Chainalysis will launch a crypto asset management program.
The program will help the government and liquidators manage and sell the seized cryptocurrency.
Government agencies continue to confiscate cryptos from cybercriminals.
With government agencies confiscating massive amounts of Bitcoin Bonanza from criminal enterprises, Chainalysis has developed a program to help manage these seized digital assets.
The news marks a major development in the consideration of cryptoassets, particularly in the context of restitution in cases where confiscated cryptocurrencies are part of a fraudulent plan.
Government and liquidators consider crypto assets
Intelligence firm Chainalysis announced the program in a press release on November 12. According to the announcement, the purpose of the service is to assist government agencies and insolvency practitioners in the management of seized and confiscated crypto assets.
The new crypto asset realization program would help stakeholders track, store and liquidate seized cryptocurrencies. Jason Bonds, Chief Revenue Officer of Chainalysis, commented on this development:
As cryptocurrencies become more common, they will be used more and more by good and bad actors […] As our government partners become increasingly successful in rooting out bad actors, helping them recover and realize their assets is a next natural step.
The Asset Realization Program is the latest in the company’s line of legal crypto tools. In the past, Chainalysis has also worked with government agencies to track down crypto crimes, including exchange hacks allegedly orchestrated by North Korean cybercrime syndicates.
Police departments around the world have seized millions of dollars in crypto from criminal entities
Some of these confiscated cryptocurrencies often involve attacks on darknet sellers.
Last October, BeInCrypto reported that Dutch authorities seized around 2,500 BTC ($ 40 million) from a couple convicted of money laundering on the darknet. In the United States, several whitehats teams led by the Department of Justice have also recovered crypto funds from online drug trafficking syndicates.
Usually, auctions like Wilsons facilitate the liquidation of cryptocurrencies confiscated by government agencies. The US Marshals have also auctioned over 185,000 BTC at various times in the past.
By selling too early, the U.S. government missed out on a potential gain of $ 1.65 billion from seized cryptocurrencies. In early November, the DoJ seized 69,369 BTC and other cryptocurrencies from a wallet linked to the now defunct Silk Road darknet market.