Chainalysis, a blockchain-based analysis platform, has unveiled a new app that will allow it to monitor all assets seized from criminal proceeds.
In its official announcement, the blockchain-based analysis firm claims that it will continue to follow the seized assets even if they are in authorities’ confines. According to their claims, Chainalysis noted that most of all the seized financial assets have a higher chance of including digital assets. Going by a recent report that was released by a news outlet, it claims that authorities have jointly seized assets worth trillions of dollars from illegal operations.
Law enforcement has seized billions of stolen cryptos in the last few years
The crypto sector has established its presence in the financial market as it has upset various markets in the industry in the last few years. With digital assets, consequently doing well in the financial market, large and small scale investors have been rushing to get their hands on the assets.
This is not new, judging by the recent performance of the coin in the financial market. Even though Bitcoin has touched a low level this year, it has also reached a price that has not been attained in the last three years. If this portrays one thing, then it means that the digital assets industry is presently outperforming other sectors in the financial markets.
Bitcoin has led the charge since cryptocurrencies came into the limelight. Even though the crypto sector has shown its good potential over the years, one fact remains that the industry has been heavily leveraged by hackers and scammers to perpetuate their criminal activities thanks to the anonymous potential that the digital assets possess. Despite the sector providing some anonymous cover, law enforcement agents have been able to keep their illicit affairs at bay, seizing billions worth of assets in the process.
Chainalysis wants to track seized digital assets
One thing that has culminated in this is that the area is still practically new and developing. Regulators are having a hard time formulating laws that will perfectly guide the sector. With the inability to establish the right laws, criminals have used the industry as one crime getaway. Most of them now use money gotten from their illicit affairs to buy crypto in a bid to evade authorities.
With many of these criminals already nabbed and their assets seized, Chainalysis wants the new platform to monitor funds before and after they are seized. A party outside the crypto market will fail to realize that seizing crypto assets is not as easy as seizing cash. If a criminal perpetrates an act using his bank account, the account can be frozen on time, but with crypto wallets where digital assets are stored, it is a different ball game.
Criminals can move the funds in their wallets once they realize that authorities are on to them, giving law enforcement the headache of having to track them. This is where Chainalysis comes in to simplify everything and make the process easy for authorities. Also, Chainalysis said that it will partner with an advisory firm that will explain how seized funds can be sold for cash when an investigation is still ongoing.