Chainalysis Launches Asset Realization Program

[Yaunfitda]

Chainalysis Launches Asset Realization Program for Government Agencies and Insolvency Practitioners

Chainalysis, the blockchain analysis company, today announced the launch of an asset realization program to help government agencies and insolvency practitioners handle, store, realize, and monitor seized assets. This announcement comes on the heels of the largest ever seizure of digital assets – collectively worth over $1 billion USD – by the U.S. government last week. Chainalysis tools and investigative assistance helped law enforcement identify and investigate the cryptocurrency wallets used in that case, which involved funds used or intended to be used to facilitate narcotics sales on the darknet marketplace Silk Road.

https://www.zdnet.com/article/chainalysis-launches-program-to-manage-cryptocurrency-seized-by-law-enforcement/

What are your thoughts on this so called program by Chainalysis, is the government hot on our heels? Or will this be just another noise out there specially coming from Chainalysis and will only be used to target criminals and strengthen their case if ever they want to file a case against a hacker/hackers?

[Baofeng]

I'm not surprised though that Chainalysis is helping the government track everything, and that's why they got that $625k bounty from IRS to developed a tool to crack down Monero transactions. But I still take everything with a grain of salt here, because I doubt that this program will just target cyber actors, everyone here is a target, regardless if you are an average joe trader or some hot shot traders or criminals.

[Jating]

I'm not surprised though that Chainalysis is helping the government track everything, and that's why they got that $625k bounty from IRS to developed a tool to crack down Monero transactions. But I still take everything with a grain of salt here, because I doubt that this program will just target cyber actors, everyone here is a target, regardless if you are an average joe trader or some hot shot traders or criminals.

As usual Chainalysis has every solution - Asset Realization Program 

Yes, take everything with a bag of salt, if they developed a tool for Monero then good, but I doubt that it will be that effective because Monero could simply ugrade to another algo and those tool are done. In this case, still a cat and mouse game, we already know what their intentions now, trying to be in the government side, but initially they look likes they are here doing good for the crypto market, but it seems they have taken advantage of every business opportunity.

[HabBear]

This is interesting and was bound to happen. Governments aren't staffed to manage seized assets located on the blockchain, it makes sense that a third party would be contracted to do such things. This doesn't indicate that the government is any better at catching criminals using bitcoin to fund their activities, only that once they do they'll have a smarter team to manage those assets and perhaps unlock the funds within the wallet.

I'm OK with asset forfeitures when associated with catching a criminal, but only if they're not determined "property of the government" until the criminal is found guilty. If Chainalysis is serving as an escrow party it's a good thing for the world.

Perhaps the one risk is if they focus their effort on hacking wallets and the blockchain. That's a step on a slippery slope that leads to bounty hunting bitcoin holders.

[HeRetiK]

That's an interesting extension of Chainalysis' usual business but it absolutely makes sense.

For the most part governments lack the expertise to properly handle cryptocurrencies (or almost anything digital really). Chainalysis already works closely with government agencies. A perfect match.

While I'm not a fan of Chainalysis' due to deeming their work privacy invasion, they are probably more adequately equipped to store seized assets securely.

[zasad@]

This news can be interpreted in different ways.
If a commercial company creates such a service, it means that in the near future, massive withdrawals of cryptocurrencies from exchanges and other services will begin.
It is probably unprofitable to create a program for managing cryptocurrencies due to several cases.

[Husires]

Can such tools provide governments with accurate mechanisms to properly monitor and track stolen bitcoin? This task will not be easy when using mixing which will be the first choice for many scams.


They need cooperation with explorers, Github, and other government services to make it work, so it is virtually difficult for a company to be able to properly track down scammers without government agency help.