Chainalysis Launches Service To Assist The Management, Sales Of Seized Crypto Assets
- Chainalysis will enable law enforcement-seized cryptocurrency to legally flow back into circulation.
- The blockchain analytics company will collaborate with experts in management of seized cryptocurrency, Asset Reality.
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Blockchain analytics company Chainalysis announced a new asset realization program to aid federal agencies and other government authorities in tracking and selling cryptocurrencies used in illicit activities.
The crypto industry has been frequently associated with malicious activities by officials since its birth 11 years ago. Not only crypto thefts and scams have been increasing in number annually since 2017, but cryptocurrencies are progressively being used in more and more serious criminal operations. This sometimes leads to big amounts of cryptocurrency being seized by law enforcement. These digital assets eventually need to be returned back in circulation and the New York-based blockchain analytics company’s new service will support exactly that.
Duncan Hoffman, Chainalysis’ general manager of the European, Middle Eastern, and African region, explained that the new service is an end-to-end solution that can be used for tracking, pre-seizure planning, handling, storing, and monitoring digital assets seized by authorities.
With the new service, digital assets that were once used for illegal operations would return back into circulation, but in a legal manner. Another benefit that would be highly appreciated by the community is selling such confiscated digital funds.
Chief Revenue Officer at Chainalysis, Jason Bonds, expects that with the continuance of cryptocurrency adoption by the mainstream, the increasing number of good actors will attract bad actors alike.
As announced on October 28, Chainalysis will collaborate with Asset Reality, a company managing confiscated assets globally. As the only company in Chainalysis’ network dealing with the management of seized cryptocurrency, Asset Reality will provide its experience to public and private sector entities.
This launch of the new service by Chainalysis comes a week after the seizure of more than $1 billion worth of crypto assets linked to Silk Road by the United States Department of Justice. Chainalysis has been involved in the aftermath of other large cryptocurrency-related forfeiture activities that happened in 2020, such as two terrorism financing campaigns, and the alleged money laundering efforts by North Korea-affiliated hackers.
- While there are still two weeks to go, Chainalysis data shows October has already become the biggest month for crypto crime, with $718 million being stolen across 11 hacks.
- 2022 was also close to becoming the most profitable year for crypto criminals, with 125 hacks being responsible for the loss of $3 billion.
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- The Series F round has more than doubled Chainalysis’ valuation since last year, which is not surprising considering it has increased its customer base by 75%.
- The company has claimed that its various tools are now responsible for monitoring around $1 trillion worth of transactions each month.
- Roman Semenov, co-founder of Tornado Cash, explained that the blockade only applies to the platform’s frontend, and not the underlying smart contract.
- The news came only a day after the Treasury Department alleged that North Korean hacker group Lazarus was connected to the $625 million Ronin bridge hack.