The Irish government is in big trouble! They once seized 378 million pounds of BTC, but can't retrieve it because they lost the Private Key

The Criminal Assets Bureau (CAB) in Ireland confiscated a large amount of BTC held by a drug dealer named Clifton Collins in 2019, which was worth $56 million at the time and has now reached $378 million due to the rise in BTC prices. However, CAB faces a major challenge in attempting to recover this asset.

Private Key lost, confiscation not possible

Collins invested in BTC in 2011 and 2012, and stored it in 12 different Addresses. According to the authorities, Collins wrote the private key on a piece of paper and stored it in a fishing rod box in his rental property; he claimed after being arrested that the fishing rod box had been lost in a theft case, so the BTC in these accounts could not be recovered.

CAB still withholds some assets for investigation

Despite the majority of BTC being lost, Collins is still forced to surrender assets worth 1.2 million euros, including the remaining 1 million euros in BTC, a private plane, a camper van, and a fishing boat.

The failure of this case did not have a significant impact, and the CAB authorities have achieved good results in the investigation of other cases. In 2023, the CAB recovered 860 euros and returned it to the Irish Treasury, setting a record high in 15 years.

More BTC lost? Awesome!

The loss of BTC under investigation is undoubtedly a negative impact for the government, as it means they cannot increase the national treasury's financial income through the high amount of BTC for tracking and tracing; on the other hand, this can be seen as good news for retail investors in BTC. The permanent loss of BTC means that the market's circulation supply will decrease, which can enhance the scarcity of BTC in the long run, thereby generating a positive impact on the price. This phenomenon will once again confirm BTC's attribute as 'digital gold', reflecting its store of value.

According to a report by blockchain analysis company Chainalysis, up to 17-23% of BTC currently in circulation may be permanently lost. In terms of actual quantity, this is equivalent to 2.78-3.79 million BTC, with a total value of $18.59-25.35 million at the limit price. The loss of these BTC may also become one of the catalysts for future BTC prices.

[Disclaimer] The market is risky, and investment needs to be cautious. This article does not constitute investment advice. Users should consider whether any opinions, perspectives, or conclusions in this article are in line with their specific circumstances. Investing based on this is at your own risk.