Chainalysis, the blockchain analysis company, today announced the launch of an asset realization program to help government agencies and insolvency practitioners handle, store, realize, and monitor seized assets. This announcement comes on the heels of the largest ever seizure of digital assets – collectively worth over $1 billion USD – by the U.S. government last week. Chainalysis tools and investigative assistance helped law enforcement identify and investigate the cryptocurrency wallets used in that case, which involved funds used or intended to be used to facilitate narcotics sales on the darknet marketplace Silk Road.
When law enforcement discovers and investigates illicit cryptocurrency assets, they need to seize and store them until they can be legally forfeited. As such, government agencies and insolvency practitioners – licensed professionals who advise on insolvency matters – need a safe way to track, store, and ultimately sell seized cryptocurrency assets for fiat currency. As law enforcement becomes more and more sophisticated in investigating illegal activity involving cryptocurrencies, including the recovery of illicit proceeds, the need for digital asset realization services is growing.
“As cryptocurrencies become more mainstream, they will increasingly be used by good and bad actors alike,” said Jason Bonds, Chief Revenue Officer, Chainalysis. “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 realization is a natural next step.”
Asset Reality, which manages and realizes confiscated assets for public and private sector clients around the world, will partner with Chainalysis to help determine how to sell seized funds. Their experienced team of legal and law enforcement practitioners provide strategic advisory services and training regarding cryptocurrency and other complex assets to law enforcement agencies internationally.
Earlier this year, Chainalysis solutions were used in high-profile law enforcement actions that involved similar civil forfeiture actions against crypto assets, including cases related to terrorism financing and North Korean hacking activities.
Media Contact for Chainalysis:
Maddie Kennedy
Director of Communications
+1 914.584.0386