Indian cyber police have lost access to $ 1.2 million from the sale of confiscated bitcoins due to blocking accounts by the country's Reserve Bank (RBI).

According to The Times of India , law enforcement officers in Pune last year seized 244 MTCs during an investigation into the cryptocurrency pyramid GainBitcoin . The police hired Discidium Internet to convert cryptocurrencies to rupees.

Subsequently, law enforcement officers tried to transfer funds to the treasury, however, RBI froze the company’s account in accordance with the ban on cryptocurrency transactions with local financial companies.

Now the police and Discidium Internet are awaiting a court decision to defrost accounts.

Recall that RBI forbade controlled institutions to provide private individuals and companies with services related to digital currencies last year. The central bank is confident that cryptocurrencies are used for money laundering and terrorist financing, and also threaten financial stability.

Residents of India signed a petition against this ban, but it did not affect the decision of the RBI.

This summer, a bill on the complete ban on cryptocurrencies in India appeared on the network . However, it is not known whether the text of the document is genuine.

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