Chainalysis, the blockchain intelligence, and surveillance firm, revealed that it had introduced a program that would help sell confiscated cryptocurrencies to government departments and insolvency practitioners.

According to the official announcement, the new software will help retrieve, store, track, and sell cryptocurrencies that have been confiscated by law enforcement authorities. Chainalysis added that as law enforcement authorities begin to crack down on criminal activity involving cryptocurrencies internationally, the need for digital asset realization services is growing.

Chainalysis, the blockchain intelligence, and surveillance firm, revealed that it had introduced a program that would help sell confiscated cryptocurrencies to government departments and insolvency practitioners.

To manage the new program effectively, Chainalysis will collaborate with Asset Fact. Asset Reality handles and realizes seized assets internationally for consumers in the private and public sectors. To further decide how to market the confiscated and forfeited cryptocurrencies, the two firms would collaborate.

When government authorities find and prosecute illegal cryptocurrency assets, they seize and store them before they are legally forfeited, the blockchain analysis company clarified. Government officials and insolvency practitioners need a secure way to track, store, and eventually sell cryptocurrencies for fiat currencies after seizing the properties.

Chainalysis’s new software would assist law enforcement with the storage and recovery facilities that they need. This new development comes after the United States government’s biggest cryptocurrency seizure last week, worth over $1 billion.

The agencies were aided by chain analysis software and forensic resources to locate and examine the crypto wallets used in the scam. Some of the funds were used (or were supposed to be used on the darknet marketplace, Silk Path, to finance drug sales.

“As cryptocurrencies become more mainstream, they will increasingly be used by good and bad actors alike. Chainalysis is dedicated to building trust in digital assets, and that means helping to detect and investigate illicit activity. As our government partners become more successful in rooting out bad actors, assisting them with asset recovery and realisation is a natural next step”. – Chief Revenue Officer, Chainalysis, Jason Bonds, noted that

This software is being introduced by Chainalysis to reply to the Department of Justice and US Marshal Service requesting assistance in the storage and sale of confiscated cryptocurrencies. Globally, law enforcement agencies continue to struggle to store, monitor, and sell forfeited cryptocurrencies, mainly because of their limited knowledge of the emerging class of assets.

LEAVE A REPLY

Please enter your comment!
Please enter your name here