Expert Uncovers Lukashenka's Crypto Fraud
- 18.02.2022, 20:20
An IT lawyer found an important remark in the decree on the "register of virtual wallets".
Everyone drew attention to the creation of a special registry of crypto wallets, which were allegedly used "to carry out illegal activities."
"However, few people paid attention to the fact that this decree (#48 - edit.) establishes the procedure for seizing cryptocurrencies, which is very important for the holders of the "crypto", notes former investigator for economic and corruption crimes, IT lawyer Illia Rokach in an express comment for Solidarity.
The specialist carefully studied the very decree of Lukashenka #48, and found out what would happen to the seized cryptocurrency.
"Suppose that a criminal case has been initiated against a certain citizen. As part of the investigative and operational search activities, it was established that he has a crypto wallet in which 1 BTC is stored.
Having received the password from the crypto wallet (we will leave the methods of obtaining the password outside brackets), the authorities gain access to the cryptocurrency. An investigator of the KGB or the Investigatory Committee, within the framework of the initiated criminal case, on the basis of Article 132 of the Criminal and Procedural Code, issues a decision to seize the cryptocurrency stored in the wallet.
Further, on the basis of paragraph 4 of the decree, the crypto currency can be forcibly exchanged under the control of the investigating authority for funds through a crypto exchange office/ crypto exchanger that are residents of the HTP. In the event that an exchange for funds in this way turns out to be impossible, it can be carried out without the participation of HTP residents (for example, Binance, etc.), and the funds will be transferred to a bank account controlled by the investigating authority, the specialist noted.
He clarifies that accounting for the cryptocurrency and documentation of all actions in this case will be carried out by the investigating authorities that issued the decision to arrest / seize the cryptocurrency.
"And if suddenly the investigation does not prove the citizen’s guilt and decides to terminate the proceedings, they will be required to return the cryptocurrency. But there is a nuance here! The refund will be made at the exchange rate at the time of the seizure.
Let's say that the seized cryptocurrency was sold at a conditional rate: 1BTC = $40 thousand. At the same time, even if on the day of return this rate is already $70 thousand, according to clauses 4.4-4.5 of the decree, the refund will be made in the amount not exceeding the amount received from the sale of the cryptocurrency.
And if, during the implementation, the commission was also withdrawn from the transaction amount, then it will not be returned either, the specialist states.
As for the registry of addresses of virtual wallets, it confirms that there is no body where you can make a request about whether a person has a crypto wallet.
— Law enforcement agencies can send requests to Belarusian crypto exchange offices / crypto exchangers (there are not so many of them) to provide information about the available wallets / accounts of a citizen of interest to them, and quickly receive a response.
But in order to get information about whether a Belarusian has a wallet/account in a foreign crypto exchange office/crypto exchanger, you need to send an international order in the due manner, which can take from 3 to 24 (and this happens!) months, and just hope to get an answer.
So, most likely, when detaining a person, law-enforcers will look for equipment (mobile phones / laptops / PCs / hardware crypto wallets) and, if they find information about the presence of crypto wallets, they will try to get a password from such a wallet, the expert concludes.