The criminal case against B.H.R. and I.R.F., who were arrested by the State Security Service (STS), has been concluded.
The relevant process was distinguished by the confiscation of cryptocurrency for the benefit of the state for the first time in practice.
Thus, according to the verdict of the Yasamal District Court, the accused persons were found guilty of organizing the illegal transfer of large amounts of money from Azerbaijan to a foreign country or from a foreign country to Azerbaijan using offset and other mutual settlement methods, under Article 206-1.3 of the Criminal Code.
B.H.R. was sentenced to 2 years and 5 months of restriction of freedom and a fine of 3 million 623 thousand 568 manats, and I.R.F. was sentenced to 3 years of restriction of freedom and a fine of 31 million 399 thousand 709 manats.
At the same time, 830 cryptocurrencies held in the account of the international virtual asset service provider "Binance", which was arrested by a court decision during the preliminary investigation, were confiscated for the benefit of the state.
It should be noted that, according to Article 99-1 of the Criminal Code, special confiscation implies the compulsory and gratuitous seizure of tools and means used in the commission of a crime, as well as property obtained through crime, for the benefit of the state.
In addition, according to Article 1.1 of the Law "On the Legalization of Property Obtained by Crime and Combating the Financing of Terrorism", property obtained through crime also includes virtual assets.
The mechanism for the implementation of the confiscation of cryptocurrency for the benefit of the state is practically a novelty, and the relevant issue is the subject of extensive discussion in the media. In this regard, the area in question, which has not been regulated until now, remains a relatively new direction not only in Azerbaijan, but also globally.
It should be noted that intensive work is underway in Azerbaijan to adopt a law that provides for the legal regulation of virtual assets and crypto markets.
