New Chainalysis program aims to help sort confiscated crypto

In the 11 years since the inception of the crypto industry, malicious parties have used digital assets for a spate of illegal activities, from drug payments to money laundering.

Blockchain analytics firm Chainalysis is launching a new service to help authorities track, custody and sell cryptocurrencies associated with crime after their capture.

The firm calls the initiative its Asset Realization Program.

"Chainalysis created an end-to-end solution for track and trace, pre-seizure planning, handling, storing, realising, and monitoring assets seized by law enforcement," Chainalysis EMEA general manager, Duncan Hoffman, told Cointelegraph.

With its new program, Chainalysis aims to help clients in a number of ways, including filing and selling confiscated digital funds, bringing closure to the once-illegally-used assets and legally flowing them back into the ecosystem, based on Hoffman's comments.

Most recently, nearly $1 billion of crypto funds connected with Silk Road, an infamous drug operation shut down seven years ago, moved wallet address locations.

Chainalysis worked with authorities on the case, according to a statement from Chainalysis provided to Cointelegraph.

Chainalysis' Asset Realization Program targets usage by government agencies, as well as insolvency practitioners - players that represent insolvent entities - although the program is also open to other interested folks.

As part of the initiative, Chainalysis teamed up with Asset Reality, a company already working in the confiscated asset niche.

The firm will work with Chainalysis on multiple processes, including the sale of confiscated funds.