Lawmakers in Illinois are pushing a bill that will allow the state government to seize cryptocurrencies that have been left unclaimed after five years. According to the proposal, the “abandoned” cryptocurrencies would be liquidated, with the proceeds being sent to the State Treasurer.
Illinois House Bill 4573, introduced by Rep. Michael J. Zalewski, is an amendment to the state’s Revised Uniform Unclaimed Property Act.
“[The bill] Provides that virtual currency is presumed abandoned if it is unclaimed by the apparent owner 5 years after the last indication of interest in the property.”
According to the bill, the State Treasurer would assume the role of the administrator.
“If property reported to the administrator is virtual currency, the holder shall liquidate the virtual currency and remit the proceeds to the administrator.
The liquidation shall occur anytime within 30 days prior to the filing of the report under Section 15-401.”
The forced liquidation would apply to any “virtual currencies”, defined as “any type of digital unit, including cryptocurrency.”
The act of liquidating the assets would be final and immutable.
According to the bill,
“The owner shall not have recourse against the holder or the administrator to recover any gain in value that occurs after the liquidation of the virtual currency under this subsection.”
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