A federal court has to experience the difficulties of getting the cryptocurrencies in return for providing bail to a 25-year-old Serbian – Italian, Martin Marsich. This is mainly due to the volatility in prices of different digital coins and the practical difficulties in using the virtual assets in the real world if the court preferred to accept cryptos for bail. As a result, the court has to change its own order and preferred fiat currency for his bail. He was accused of stealing digital goods.
Compensation for Bail
The Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI) have accused Marsich of stealing about $324,000 by way of digital goods from Electronic Arts, Redwood City video game, in San Francisco. The accused has sought bail from Federal Judge Jaqueline Corley, who ordered him to pay bitcoin worth $750,000. Alternatively, he was allowed to pay any other digital coins for the same amount in return for his bail, ambcrypto.com reported.
However, there is a dilemma between the court and the federal authorities as they realized the practical difficulties in using them in the real world. Also, digital currencies are prevalent only online. Aside from that, there were also concerns about selling a big hoard of lightly and thinly traded digital currencies. They feared that such an action could drive the value of such virtual asset to fluctuate all of a sudden thus affecting the overall market sentiments.
The FBI felt that it was not in a position to take possession of the digital currencies pointing out the liabilities issues. However, it is a different matter that part of such deposited currencies would be used for compensating Electronic Arts for the loss it suffered at the hands of the accused. Aside from these, Susan Knight, assistant attorney, talked with the district council only to find that there was no interest in providing bail in return of virtual assets.
In fact, at one point in time, the federal authorities have even started setting up the bail that included digital coin wallet creation to enable Marsich to transfer the specific cryptocurrency. However, the court has reversed its decision and indicated that it was not willing to accept virtual assets as collateral. This has driven the defense and prosecutor to reach a conclusion that allowed Marsich to sell cryptocurrencies worth $200,000 through a broker and get his bail.
There is an interesting audio recordings of the proceedings when Ben Kingsley, assistant attorney, said, “My sense is that it’s happened before, but it’s not the most common thing, so it might take a couple of days to get set up, By then we should have the [cryptocurrency] wallet set up, and we can do the transaction with the agents present.”
Marsich started hacking a private network since September 24 last year. However, Electronic Arts found that its systems were compromised only in March this year. He was able to get access to a secret key that the gaming firm alone possessed. He used two apps and tampered with the company’s systems to steal digital goods.