Police seize £300,000 worth of Bitcoins for first time in force's history

Computer currency Bitcoins have been seized by Leicestershire Police for the first time in the force's history as part of an investigation into alleged money laundering.

The force has seized 26 Bitcoins, worth approximately £300,000. Officers also confiscated £1 million in other assets from an person who is under investigation for alleged money laundering.

Paul Wenlock, head of the force's economic crime unit, said his investigators were breaking new ground by seizing the online currency.

He said: "This is the first case in Leicestershire involving the seizure of Bitcoins.

"This is part of an ongoing investigation into alleged money laundering. A person has been arrested and released under investigation.

"We robustly enforce the Proceeds of Crime Act and are always looking for information which will lead us to criminal assets.

"However, things have moved on and they are hiding money in the virtual world."

Leicestershire Police uses the Proceeds of Crime Act to confiscate assets including cash, property and luxury goods, which officers believe are paid for by criminal activity such as drug dealing, fraud and money laundering.

Last year, the force made 81 confiscations, worth a total of approximately £970,000.

What are Bitcoins?

Bitcoin was the first of what have become known as 'cyptocurrencies', which was developed by somebody using the pseudonym Satoshi Nakamoto in 2013.

It is a form of digital money that uses encryption to secure online transactions and control new units that are created.

Nakamoto wrote that the currency uses "cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party". It uses a distributed, cryptographically secure 'blockchain' to record payments of transactions.

Bitcoins can be obtained in a number of different ways. It's possible to accept them as payment for goods or services.

You can also buy them directly from individuals or special websites called 'exchanges' that will swap Bitcoins for regular currency.