Blockchain surveillance company Chainalysis announced the launch of a new program aimed at the recovery, storage and sale of crypto assets seized by governments.
(O) asset realization program (will) help government agencies and insolvency practitioners (when the debtor has installments to fulfill, if he does not comply he is considered insolvent, in bankruptcy or recovery) to handle, store, carry out and monitor the assets seized, Chainalysis said on Thursday.
The company explained that when the police are working with crypto, the entity will often need to not only learn about the nature of the asset, but also store it until legal confiscation.
The organization believes that licensed professionals, insolvency practitioners and governments around the world will need a reliable program that can be a "safe way to track, store and ultimately sell seized cryptocurrencies for fiat money".
"As cryptocurrencies become more popular, they will be increasingly used by good and bad actors," said Jason Bonds, chief revenue officer at Chainalysis on Thursday.
Chainalysis is dedicated to building trust in digital assets, which means helping to detect and investigate illegal activities. As our government partners become more successful in eradicating evildoers, assisting them in the recovery and realization of assets is a natural next step.
The Chainalysis announcement also indicates that the company has partnered with a company called Asset Reality. The company's consultancy service works with global law enforcement that deals with “complex assets”.
The announcement also details that Chainalysis helped US law enforcement to “identify and investigate used cryptocurrency wallets” in the recent bitcoin confiscation of Silk Road.
US security agencies have already asked for help from the private sector to store and sell confiscated crypto assets.
The introduction of the new program offered by Chainalysis follows US law enforcement agencies, such as the Department of Justice and the U.S. Mashal Service, asking for help in storing seized cryptocurrencies.
During the Silk Road auctions, years ago, the US Marshals were in charge of storing and auctioning the cache (deposit of information that is stored in a system) of confiscated bitcoins. However, in April 2020, both agencies published a request for “storage, maintenance and disposal of seized / lost virtual currency”.
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