Economic Crime Bureau loses Bitcoin worth 350 million euros

An unusual case is currently making headlines in Ireland and beyond: As reported by the Irish Times, the Criminal Assets Bureau (CAB) has lost access to bitcoin currently worth over 350 million euros, as the necessary keys can no longer be found. The coins were seized in 2019 in the course of a drug raid against the now convicted drug dealer C. Collins. At the time, the value of the confiscated BTC was still around 53 million euros.

The case goes back to former beekeeper Clifton Collins, who had been growing cannabis illegally for years. In 2017, Collins was accidentally targeted by the Gardaí (Irish National Police) when officers on routine patrol stopped a suspicious vehicle in County Wicklow. Inside they found cannabis worth €2,000. A subsequent investigation uncovered further illegal activity, including the cultivation of cannabis in several rented properties in counties Galway, Meath and Longford. A cannabis plantation worth €400,000 was discovered in one of the houses in Galway, which eventually led to Collins' arrest.

Back in 2011 and 2012, Collins began investing some of his drug proceeds in Bitcoin, which naturally resulted in an immense increase in value over the years. In order to store his coins securely, he distributed the BTC across a total of 12 different wallets.

He documented the necessary "private keys" on a handwritten notepad, which he hid in a fishing rod container on one of his rented properties in Galway.

However, after Collins' arrest and the subsequent eviction from his rented properties, the crucial document was lost. It is believed that it was either carelessly thrown away or possibly even stolen by someone involved. However, according to Collin himself, he could also imagine that burglars could have stolen the accesses in advance.

Whatever the case, the private keys are gone and can no longer be found. A dilemma for the CAB, because although the authorities succeeded in legally confiscating the BTC, they are still denied access to the Bitcoin. For the officials, the case may be a great learning experience to be a little more careful during future house searches/evictions.

After all, with Bitcoin there is no central authority that could be called upon or pressured by a court order to release the coins. The credo "not your keys, not your coins" is both a curse and a blessing. For this reason, all Bitcoin users should always ensure that their own keys are kept as securely as possible and protected from the eyes of third parties. So-called steel wallets such as the "Seedor Safe" can be a real help here.