Chainalysis is preparing to help its governmental clients sell the same trove of forfeited cryptocurrencies the blockchain tracing company often assists in tracking down.

  • On Thursday, Chainalysis unveiled a program for storing and selling forfeited crypto in partnership with confiscated asset consultancy Asset Reality.
  • The program will likely cater to many of the same government clients that already pay Chainalysis millions of dollars annually to help trace illicit crypto transactions.
  • Those investigations sometimes lead to agencies taking possession of eye-popping crypto sums. Just last week, the U.S. Department of Justice (DOJ) announced it seized over $1 billion in bitcoin that Chainalysis software traced back to Silk Road.
  • DOJ agencies unload their crypto on the public through semi-regular forfeiture auctions. These sales can raise tens of millions of dollars for the government.
  • But the U.S. Marshals Service, which runs those auctions, has been asking since April for a private-sector partner to help it manage and dispose of forfeited cryptocurrency. 
  • Chainalysis representatives did not immediately confirm if its new partnership with Asset Reality was in response to the U.S. Marshals’ request.

Read more: US Seized More Than $1B in Silk Road–Linked Bitcoins, Seeks Forfeiture

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.