In what is reportedly Canada’s largest-ever forfeiture, a Toronto judge has ordered Matthew Phan, an online drug dealer to pay his entire $1.4 million Bitcoin (BTC) holdings to the state, as reported by local daily news outlet The Star on April 3.
Phan is convicted under the charges of dealing in illegal narcotics online. The court claimed his 281.41 BTC (worth around $1.4 million at press time) in February, however, Phan appealed against the demands. Though Phan tried to convince the court that his fortune in Bitcoin is through other activities, it seems his appeal was undermined.
As per the publication, Superior Court Justice Jane Kelly stated that Phan failed to convince her that the said funds are obtained through legal operations such as trading on cryptocurrency exchanges. The Star quoted her as saying:
“It is a reasonable inference to draw that payment for such illegal narcotics sales was made using Bitcoin that was found in the digital wallet on Mr. Phan’s computer.”
The case follows the aftermath of a much media heightened case of QuadrigaCX, where around $190 million in crypto and fiat have gone been missing after the unexpected demise of the platform’s CEO in December last year.
Currently, working as administrators for the business, Ernst & Young has admitted officially this week that chances of a reemergence from its present difficulties were unlikely. Implying that the exchange should look out for bankruptcy options.
Amidst these controversies, assets of the founders of Vanbex, a blockchain consulting firm who minced $22 million in an alleged fraudulent initial coin offering (ICO) has been frozen by the Canadian police.
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