The German prosecutors have opted for the confiscation of more than EUR 50 million worth of bitcoin from a fraudulent person. The only problem behind this situation is they are unable to unlock the money. The fraudster is not going to give them the password to unlock the bitcoins.
The fraud man has been sentenced to jail. While serving the term, he is maintaining a seal on his mouth throughout. The German police have repeatedly failed in efforts to crack the code for accessing more than 1700 bitcoins, as a prosecutor said in the Bavarian town of Kempten.
“We asked him but he didn’t say,” prosecutor Sebastian Murer told journalists on Friday. “Perhaps he doesn’t know.”
Bitcoin is stored on a particular software, which is popularly known as the digital wallet. It is secured using encryption.
A password is in use for the decryption of the key. This key is going to open the wallet and allow access to bitcoins. When the password is lost, the user becomes unable to open the wallet at any cost.
The fraudster has been sentenced to jail for more than two years. He has been levied charges for covertly installing the software on the computers of others. He did this for harnessing the power for mining or producing more bitcoins.
As the fraudster is behind bars, in the meantime, his bitcoin stash is having the worth of a fraction of the current value for bitcoins. The price of bitcoin has been surging for the past few years. It has managed to hit the all-time high record worth $42000 in January. Now, it is trading near $37577 as of Friday. The price is according to the reports of the cryptocurrency and blockchain website, Coindesk.