Scottish court makes history with £110K stolen crypto seizure

Scottish prosecutors made legal history by converting cryptocurrencies into physical money using the proceeds of crime.

According to the BBC, Scottish prosecutors used the Proceeds of Crime Act to seize £109,601 from John Ross Rennie by converting stolen cryptocurrencies into physical cash.

This is the first instance of cryptocurrencies being confiscated under such laws in Scotland.

The mastermind behind the crime

Rennie, 29, was found with 23.5 Bitcoin (BTC) following a violent robbery in Lanarkshire on March 18, 2020.

A man who saw that the attacker was holding a machete during the robbery was forced to transfer Bitcoins, while a woman in the house was hit repeatedly with Toblerone and threatened, and the attackers fled.

According to the BBC, one of the three men involved in the robbery made a “throat-slitting gesture” with a bloody chocolate bar.

Although Rennie was not directly involved in the attack, the court found that he provided the technical expertise necessary to transfer the Bitcoin, earning him the label of “technical mastermind” behind the heist.

Criminal procedure

Prosecutors launched a proceeds of crime case earlier this year, but the settlement was initially proposed in full crypto. Judge Lady Ross continued the case, seeking legal authority to deal with crypto under those laws.

The High Court of Edinburgh ruled on September 2 that the Bitcoin should be converted to cash, setting the amount at £109,601.

Rennie was previously sentenced to 150 hours of unpaid work and a six-month supervised community care order for his attendance. Sentencing judge Lord Scott said Rennie was a first-time offender but his role in laundering the proceeds of the robbery was significant.

This case sets a legal precedent as it is the first time police in Scotland have tracked and seized stolen cryptocurrencies.