UK police make extra £500,000 from seized bitcoin

In an unexpected turn of events, Lancashire Police just got a financial boost aimed at fighting crime, as the seized bitcoin (BTC) turned out to be a profitable "investment" for the police force.

Lancashire Police said it will receive £500,000 ($665,390) after selling the seized BTC and reimbursing the theft victim, as "a surplus amount of £1m remained." Half of this sum will go to the Home Office. Meanwhile, the law does not allow victims "to be overpaid."

According to law enforcement, the seized BTC was related to a theft in 2017. An investigation was launched, and the police found that the criminals had converted the stolen money into BTC.

"As the bitcoin continued to rise in value over time, it increased to more than what was originally stolen," the police said, adding that "It’s unusual for the criminal property to rise in value to more than that of the original crime," and now "some spare" can be used to reduce crime.

They'll receive £500,000 within a few months. The money should be reinvested into fighting crime, as part of the Prevention and Problem-Solving Innovation Fund.

"The fund is specifically for the assets seized and confiscated from criminals. By taking away the financial gains of criminals and using them for positive purposes, the fund helps to disrupt the cycle of crime and prevent future offences," the law enforcement explained.

Previously, the fund was used to finance purchases of crime-fighting equipment such as drones, spam call blocking devices, and community projects approved by the police’s Antisocial Behaviour Prevention team.

Meanwhile, seemingly without reading the official announcements, some bitcoiners wrongfully accused the police of stealing GBP 1 million from victims, as they thought the criminals stole BTC, not traditional fiat money. In that case, the original BTC should have been returned to the victim, as is being done, for example, after the hack of what was once the biggest bitcoin exchange, Mt. Gox, allowing the victims to enjoy BTC's price increase over more than ten years while waiting for their funds to be returned.

However, other bitcoiners soon fixed the misunderstanding, pointing out that the criminals stole fiat that was later converted to BTC.