Noting that the transaction took around a day to complete, the State Tax Inspectorate said that it would now be easier in future to exchange cryptocurrency seizures for fiat currency.
Lithuania has revealed it will launch its CBDC in the coming week. However, the digital currency is a bit different and will not target retail payments.
The central bank is also looking at how firms in the energy, transport and healthcare sectors could be set to benefit from blockchain.
New regulations coming to Lithuania will make it harder for criminals to continue trading in cryptocurrencies.
The Central Bank of Lithuania recently announced its updated position on digital assets and initial coin offerings, with the aim of leveling the playing field.