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Man has €52million worth of Bitcoin confiscated after High Court rules cryptocurrency proceeds of crime

A MAN who was an early investor in Bitcoin and saw it soar to €52m in value has had the whole lot confiscated by the State as the proceeds of crime.

Clifton Collins, 49, bought around 6,000 units of the cryptocurrency at an early stage and kept it as its price rocketed online.

 Clifton Collins, an early investor in Bitcoin, has had €52m worth of the cryptocurrency confiscated
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Clifton Collins, an early investor in Bitcoin, has had €52m worth of the cryptocurrency confiscatedCredit: Reuters
 The Four Courts in Dublin where the High Court is situated
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The Four Courts in Dublin where the High Court is situatedCredit: Alamy

He came to Garda attention in February 2017, when a 4x4 he was driving was stopped in the Sally Gap area of the Wicklow Mountains.

A search of the vehicle uncovered a small amount of cannabis and in a follow-up operation, cannabis plants worth €450,000 were found at Corr na Móna in Galway.

The Criminal Assets Bureau began an investigation and discovered Collins, with an address in Crumlin, Dublin, possessed the bitcoin and applied for a temporary freezing order.

This was granted by the High Court in July of last year under the Proceeds of Crime Act.

CAB'S BIGGEST CRYPTOCURRENCY SEIZURE

The High Court has now ruled the cryptocurrency was the proceeds of crime and that it should be forfeited to the state.

Judge Alex Owens granted a permanent freezing order on the virtual cash, which is estimated to be worth €52m.

Collins did not contest CAB’s application.

CAB will now keep control of the funds for seven years, before it is redistributed by the Department of Finance.

The seizure is believed to be the biggest single one of its kind by the bureau.

'CRYPTOCURRENCY IS AN ASSET'

Bitcoin was created in 2009 by a mysterious developer named Satoshi Nakamoto as “a system for electronic transactions without relying on trust”.

One unit was initially worth less than 1c, but today is trading at €9,417.24.

The cryptocurrency’s ease of anonymous use has made it a favourite of criminals and hackers alike.

Each coin is stored in a digital wallet identified only by a string of numbers and letters and users do not have to provide personal information to sign up for a wallet.

CAB’s annual report last year revealed a growing tendency among criminals to use cryptocurrencies to transfer money.

Bureau chief Pat Clavin said: “We have trained people, we have digital specialists who are able to take possession of the computer or the mobile device, able to move those cryptocurrencies so that we are in control of them.

“We had our digital specialists who learned how to look at cryptocurrencies and indeed some of our specialists are able to help other law enforcement agencies throughout Europe and indeed beyond.

“We have to be in a position to deal with any kind of asset and cryptocurrency is an asset.”

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