The Bulgarian government's 2018 decision to sell over 213,500 Bitcoin — now valued above the country's public debt — has reignited discussion on crypto as a sovereign reserve asset . In May 2017, Bulgarian authorities conducted a significant operation against an organized crime group involved in customs fraud, leading to the seizure of 213,519 bitcoins . At that time, the seized bitcoin was valued at approximately $500 million .
The group had allegedly used computer viruses to infiltrate Bulgaria's customs systems, enabling them to import goods without paying the required duties . They chose bitcoin for its perceived difficulty to trace . The SELEC first reported the Bitcoin was worth just $500 million .
However, there have been conflicting reports regarding the actual possession of the bitcoins by the Bulgarian government . Some officials have denied that the bitcoins were ever in government custody, while others have suggested that the bitcoins were sold in secret auctions . In 2017, then-Finance Minister Vladislav Goranov claimed that the BTC was sold in batches to avoid market disruption .
In April 2018, a local news publication reported that the government auctioned off its haul in a low-key affair which involved various international buyers . The sale occurred a matter of months after the crackdown, as Bitcoin price reached its all-time high of around $20,000 in December 2017 . The publication claims that Bulgaria's finance minister, Vladislav Goranov, told the Prime Minister's Security Council the sale had taken place, and that the coins were sold piecemeal so as not to crash the market . “Several sovereign wealth funds and Asian investors” purchased the coins for around €15,000 each, with Deloitte acting as a consultant, Bivol references Goranov as revealing .
Had Bulgaria held onto its Bitcoin, their value would have far exceeded the country's public debt today . This has reignited the debate over whether governments should treat crypto as a reserve asset .
Despite the sale, Bulgaria is still recognized for potentially holding a substantial Bitcoin reserve, positioning it as a notable player in the realm of digital asset management among sovereign entities .