Chainalysis’s new program to help law enforcement sell seized crypto

Chainalysis and Asset Reality address a gap law enforcement agencies have long struggled with. When agents seize digital holdings, officials must store them. But they face a critical issue: they have no clear process for converting the seized cryptocurrencies to traditional money. Asset Reality fills that gap. The firm's team includes former law enforcement officers and legal professionals who advise agencies on cryptocurrency as an asset class and guide them through sales and realisation processes.

Chainalysis contributes its monitoring and investigative technology. The startup's blockchain analysis tools identify and track illicit activity on blockchains. Last week, the U.S. government seized over $1 billion in cryptocurrency, using Chainalysis tools to connect the funds to crimes including narcotics trafficking on the darknet marketplace Silk Road.

"As cryptocurrencies become more mainstream, they will increasingly be used by good and bad actors alike," said Jason Bonds, chief revenue officer at 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 realisation is a natural next step."

The Department of Justice and the U.S. Marshals Service requested Chainalysis's help managing their growing stockpile of seized digital assets. The challenge extends beyond the U.S. Most law enforcement agencies lack the technical knowledge and infrastructure to store, monitor and sell cryptocurrencies after confiscating them in criminal investigations.