Crypto Tracing Company Wants To Help Feds Handle Seized BTC

The crypto tracing company wants to help the Feds with the handling of seized Bitcoin as Chainalysis dedicated an “asset realization program” that will help the US government deal with the stores of seized cryptocurrency so let’s read more in today’s crypto news.

Chainalysis is a blockchain analysis company that launched a program to help governments better store ill-gotten crypto seized during investigations. The company helped the DOJ track down the 69K Silk Road-tied BTC which the US Government seized last week. Cryptocurrencies came a long way since BTC free-fell of the Silk Road era but they are still a popular opinion if you are looking to conduct illegal businesses on the dark web.

However, the crypto tracing company that pitched itself as something like the blockchain watchdog, is now working with governments to trace and to seize ill-gotten crypto. Now, the company announced a new program to help governments to keep an eye on their stores of legally-seized assets. Over 69,000 Bitcoin linked to the Silk Road that was lying dormant since the marketplace closure in 2013, were transferred to the government-controlled wallet. In the forfeiture complaint, the Department of Justice disclosed that it used a third-party BTC attribution company to analyze transactions that were executed by Silk Road. Chainalysis has since taken responsibility for the analysis.

After the court orders a forfeiture, the government-seized crypto is liquidated at auctions that are held by the US Marshall Service on their own terms by determining how many auctions are held and the size of the blocks sold. If the auctioneers are not delicate in approaching, there could be heavy consequences for the market according to Michael Van De Poppe:

 “If the Department of Justice decides to market-sell those Bitcoins, you’d be seeing a significant dip, as it will go through all orderbooks.”

What happens to the crypto after the seizure? Chainalysis claims that the new program will help improve the storage and tracking of seized assets in this window. Asset Realty, a partner company will also bolster the efforts by providing “strategic advisory services and training regarding cryptocurrency and other complex assets” according to the press release. The tracing company executive Jason Bonds explained:

 “As our government partners become more successful in rooting out bad actors, assisting them with asset recovery and realization is a natural next step.”

The most recent partnership was with the US government but the company remains open to working with governments and insolvency agencies in the world which is another bad sign for criminals that are trying to make money on the dark web.