Baku: The court proceedings in the criminal case against B.H.R. and I.R.F., who were arrested by the State Security Service (SSS) of the Republic of Azerbaijan, have concluded. It should be noted that, for the first time in practice, the proceedings were distinguished by the confiscation of cryptocurrency in favor of the state, APA reports.

According to Azeri-Press News Agency, the verdict of the Yasamal District Court found the accused guilty under Article 206-1.3 of the Criminal Code. They were charged with organizing the illegal covert transfer of especially large amounts of money from the Republic of Azerbaijan to a foreign country or vice versa through offsetting and other methods of mutual settlements. B.H.R. received a sentence of restriction of liberty for 2 years and 5 months and a fine of 3 million 623 thousand 568 manats. I.R.F. was sentenced to restriction of liberty for 3 years and a fine of 31 million 399 thousand 709 manats.

Additionally, under the court's verdict, 830 units of cryptocurrency held in an account with the international virtual asset service provider Binance, which had been seized during the preliminary investigation, were confiscated in favor of the state.

The court applied Article 99-1 of the Criminal Code, which allows for the compulsory seizure in favor of the state of instruments and means used in the commission of a crime, as well as property obtained through criminal activity. Furthermore, Article 1.1 of the Law of the Republic of Azerbaijan 'On Combating the Legalization of Criminally Obtained Property and the Financing of Terrorism,' includes virtual assets as property obtained through criminal activity.

The implementation of cryptocurrency confiscation in favor of the state is a new development, sparking discussions in the media. This area has remained unregulated and is still a relatively new field in Azerbaijan and globally.

Efforts are underway for the adoption of a law to provide legal regulation of virtual assets and crypto markets in Azerbaijan.