U.S. Department of Justice to Review Digital Asset Compensation Practices

According to Odaily, the U.S. Department of Justice (DOJ) has announced plans to reassess its approach to compensating investors in cases involving fraud and theft of digital assets. The DOJ memorandum highlights concerns over the practice of reimbursing investors at values lower than the current market price when digital assets are seized. The memorandum references several high-profile bankruptcy cases from 2022, noting that while not all involved criminal charges, many resulted in investor losses due to fraud and theft of digital assets. Additionally, the DOJ pointed out that the value of these digital assets has significantly increased in the years following these incidents. Under current U.S. bankruptcy regulations, seized assets are returned to victims based on their value in U.S. dollars at the time the fraud occurred. Although this may seem unfair, experts argue that there are significant reasons behind this rule, and changing it could prove to be very challenging.