What happens to cryptoactives used in harmful activities once they are confiscated by the authorities? The new Chainalysis programme helps to search through the rubble.
In the 11 years since the crypto industry began, malicious parties have used digital assets for a range of illegal activities, from drug payments to money laundering. The blockchain analysis firm, Chainalysis, is launching a new service to help authorities track, safeguard and sell cryptosystems associated with crime once they are confiscated. The firm calls the initiative its Asset Realization Program.
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„Chainalysis created an end-to-end solution for tracking and tracing, pre-seizure planning, handling, storage, enforcement and tracking of assets seized by law enforcement,“ Chainalysis EMEA CEO Duncan Hoffman told Cointelegraph.
With its new program, Chainalysis aims to help clients in a number of ways, including the presentation and sale of confiscated digital assets, stopping the circulation of assets that were once used illegally, and getting them to flow legally back into the ecosystem, according to Hoffman’s comments.
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Several high-profile and minor crimes have involved crypto-currency in recent years, including hacking, terrorist financing and other events.
More recently, nearly US$1 billion in crypt coins connected to Silk Road, an infamous drug market closed seven years ago, changed hands. The U.S. Department of Justice, or DoJ, subsequently filed a request to take control of the funds from an unknown hacker, which explains the change of address of the wallet. Chainalysis worked with authorities on the case, according to a statement by Chainalysis provided to Cointelegraph.
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The Chainalysis Asset Realisation Programme focuses on the use by government agencies, as well as insolvency practitioners, of players representing insolvent entities, although the programme is also open to other interested individuals.
As part of the initiative, Chainalysis partnered with Asset Reality, a company already working in the confiscated assets niche. The firm will work with Chainalysis on multiple processes, including the sale of confiscated funds.
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