The U.S. Department of Justice will reassess how victims 'assets are returned in crypto-crime cases
On April 17, the U.S. Department of Justice (DOJ) said in a memorandum that it would review the practice of how to pay investors at a price lower than the current market value after digital assets are confiscated in cases involving fraud and theft. The memorandum mentioned that the Justice Department focused on some well-known bankruptcy cases in 2022, including FTX, Voyager Digital, Celsius Network, Genesis Global, BlockFi and Gemini Trust. Although not all of these bankruptcy cases involve criminal charges, the Justice Department noted that many of these cases resulted in investors losing digital assets due to "fraud and theft." In addition, the Ministry of Justice also pointed out that in the following years, the value of these digital assets has increased significantly. However, the court did not act out of the will to cause pain to creditors. The problem is that current U.S. bankruptcy regulations stipulate that confiscated assets should be returned to victims at their dollar value at the time of the fraud. While this may seem unfair, experts say there are important reasons behind the rule and it can be very difficult to change it.
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