Research: The scale of crypto assets related to illegal activities and accessible to law enforcement has exceeded $7.5 billion, and countries may follow the US in seizing them as reserves.

BlockBeats News, October 9, according to Bloomberg, Chainalysis research shows that cryptocurrency assets related to illegal activities and "on-chain" within the reach of government law enforcement agencies have exceeded $75 billions. Governments around the world may learn from the U.S. approach of confiscation as reserves.

U.S. Treasury Secretary Scott Besant stated in August this year that the United States has currently confiscated about $15 billions to $20 billions worth of bitcoin. Chainalysis found that by 2025, the on-chain balance of illegal entities will be close to $15 billions, and downstream wallets (with at least 10% of funds coming from crime) hold more than $60 billions.

Cryptocurrencies controlled by darknet market administrators and vendors exceed $40 billions. Of the $15 billions directly held by illegal actors, bitcoin accounts for about 75%. Together with ethereum and stablecoins, this figure has surged 359% compared to five years ago. Downstream wallets show a similar trend, with darknet-related wallets having a compound annual growth rate of over 200%.

However, whether authorities can actually seize these $75 billions remains in doubt. Although law enforcement agencies have significantly intensified their crackdown on cryptocurrency crime in recent years, the skills, international cooperation, and funding required to identify, track, and confiscate criminals' digital assets are still a major challenge.