Blockchain analytics firm Chainalysis is developing a new service to help government agencies store and sell confiscated cryptocurrencies.
In a release official, the analysis firm in blockchain, Chainalysis announced its partnership with Asset Reality to design and deliver a new service for government agencies. It is a program called Asset Realization Program, which is aimed at facilitating the work carried out by government and competition agencies in law enforcement, so that they can guard and sell cryptocurrencies confiscated in legal proceedings.
The firm assures that its new service seeks to help and facilitate the work of government agencies to "manage, store and monitor seized assets," after the SEC reported the largest seizure of digital assets to date. Likewise, the renowned firm states that the importance that the cryptocurrencies, and digital assets today are leading government agencies and regulators to take a much greater interest in these assets and how they are used by their holders.
Thus, the numerous investigations carried out by governments make it possible to detect minor and high-profile illegal activities that occur within the digital ecosystem and to confiscate digital assets related to illicit activities. Therefore, Chainalysis sees the need to create a product that allows these agencies to track and store confiscated cryptocurrencies, and exchange them for fiat currency in a secure manner. The partnership with Asset Reality will allow Chainalysis to offer a high-quality service, as this company has extensive experience in the management of confiscated assets in the public and private sectors.
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$1,26 billion confiscated
The United States Securities and Exchange Commission (SEC) published its annual report, corresponding to the fiscal year 2020, where it reveals that it has carried out the largest confiscation of digital assets to date. According to the publication of the entity, more than 1,26 billion dollars were confiscated this 2020 as a result of unregistered Initial Coin Offerings, better known as ICOs, with GRAM, Telegram's token, being the main source of the seizure made by the regulator.
The amount seized in cryptocurrencies and digital assets represents a quarter of the total obtained in sentences and orders issued by the SEC, which was approximately $4,68 billion, according to Stephanie Avakian, the entity's director of compliance. On the other hand, although 2020 is not over, the figure announced by the regulator reveals an unprecedented year; not even in 2017, the year known as the ICO boom due to its excessive publicity, fundraising and speculation, was such a high figure seen in confiscated digital assets. Likewise, the figure for 2020 may increase significantly, since the SEC still has pending cases to close, such as the lawsuit filed against the NAC Foundation for $5,6 million.
Help with managing and selling confiscated assets
Jason Bonds, Chainalysis’ chief revenue officer, notes that the company is dedicated to building trust in the digital and cryptocurrency ecosystem, which is why it focuses its efforts on helping government agencies detect and investigate illicit activity within this space, as well as enforcing current laws and regulations that govern commercial activities within the crypto ecosystem.
“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 vision and perspective of the entity is to facilitate the work of regulators, who have for some time shown great interest in this type of tools and services. For example, the United States Department of Justice (DOJ) has been very focused on developing strategic alliances with firms such as Chainalysis to acquire tools for tracking and cryptocurrency surveillance; in addition, the Federal Reserve (FED) has also been venturing into the world of cryptocurrencies, forging alliances with important exchanges and cryptocurrency exchanges, such as Coinbase, to accomplish the same goal as the DOJ.
Digital Asset Auction
Organizations such as the United States Marshals Service (USMS), one of the oldest federal law enforcement agencies in the country, published a job offer contract In April, the USMS agreed to acquire a “virtual currency management and disposal” service that would allow for the auctioning of funds in digital assets seized by the agency. In February, the USMS conducted the sale of a total of 4.040,5 BTC seized, and in 2014 an auction was held for approximately 30.000 BTC.
About Asset Reality
As Chainalysis explains in its statement, Asset Reality is a company that provides confiscated asset management and administration services worldwide, making it the ideal partner to reinforce the solutions designed by the firm. Asset Reality has a large and experienced team of professionals who will provide strategic advice and training in legal and law enforcement matters to design the system for the safe sale of confiscated digital assets internationally.
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