Federal officials recently raided a software piracy racket and seized a wide range of upscale assets, which includes a huge chunk of digital currencies Bitcoin and Litecoin.
As per the available information, the alleged software counterfeiting organization — known as Technolutions — had around 105 BTC and 999 LTC, which were held by its alleged operator Rex Yang. Other items cited in aforesaid civil forfeiture included $7 million in cash, gold and silver coins, as well as expensive rings, cars and one Rolex watch. They all were seized from a number of companies located in Maryland, Washington, Missouri, and Nevada — possibly working under the same racket.
The US agency also put a restraining order on Yang’s properties in Seattle, which include a number of buildings and $2.2 million in funds.
How Bitcoin Got Alloyed into this Scam
According to the court documents, cryptocurrencies Bitcoin and Litecoin are doubted to have been used as a payment mechanism for selling illegal software. A majority of these coins was first bought from popular Bitcoin service company Coinbase by accounts held by Yang and other individuals. The document however doesn’t reveal the extent at which Bitcoin and Litecoin facilitated Technolutions.
Does it Effect Bitcoin Reputation?
Probably it doesn’t. It is like blaming cash for being used to buy drugs, not the culprits who actually used it at first place. But indeed, these are the times when state regulators are closely watching digital currency sector for its boons and banes. The more Bitcoin gets involved in such cases, the worse it will appear before the lawmakers.
It has happened in the case of Silk Road where Bitcoin was found to be used in facilitating drug trafficking and money laundering. But even then, the cryptocurrency has come a long way ahead in terms of awareness and understanding, thanks to its committed advocates.
