The U.S. Department of Justice proposes to adjust the rules for the return of assets for crypto crimes

WuSaidBlockchainW · 2025-04-17T12:09:28+00:00

The U.S. Department of Justice plans to re-evaluate the way assets are returned in crypto crimes to resolve the controversy raised by the current rules. The memorandum points out that compensation based on the dollar value at the time of the fraud will result in creditors not being able to share in the appreciation of assets, and there may be procedural unfairness and market timing issues. While the current regulations are designed to protect victims from the risk of asset depreciation, they also acknowledge that improvements are needed to address real-world issues that may require congressional amendments.

WuSaidBlockchainW

2025-04-17 12:09:28

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According to Unchained, the U.S. Department of Justice (DOJ) issued a memo saying that it will re-evaluate the return of confiscated assets in crypto crimes, due to the controversy over the current rules for compensation based on the dollar value of the fraud when it occurs. In the FTX bankruptcy case, for example, the price of Bitcoin was $17,500 in November 2022 and has risen to $108,000 in January 2025, and creditors are compensated at the 2022 price and cannot share in the appreciation of assets. While acknowledging that the current regulations are designed to protect victims from the risk of asset depreciation, the DOJ also points out that reparations at current prices can lead to procedural inequities and market timing issues. The memo does not specify a timeline for improvements, which may require congressional amendments.

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