PlayIconNav
BTC
$68,720.84-0.48%
ETH
$2,439.41-1.32%
BNB
$560.17-0.42%
SOL
$163.31-0.53%
XRP
$0.50624776-1.04%
DOGE
$0.16975251+7.29%
CD20
$2,000.21-0.60%
TRX
$0.16148781-2.23%
ADA
$0.33125050-0.75%
SHIB
$0.00001787+4.17%
WBTC
$68,651.89-0.61%
AVAX
$23.36-1.51%
Ad
Policy
Election 2024

Law Enforcement Agencies Are Missing Forked Cryptos in Criminal Seizures: Research

Blockchain analytics company Coinfirm said authorities are "ignoring" criminals' stockpiles of cryptocurrencies that forked from bitcoin.

By Daniel Palmer
AccessTimeIconNov 23, 2020 at 1:27 p.m. UTC
Updated Aug 19, 2021 at 5:48 a.m. UTC
Presented By Icon

Election 2024 coverage presented by

Stand with crypto
stacks-of-coins

Authorities are "ignoring" sizable stashes of "forked" cryptocurrencies when they make bitcoin seizures from criminals, according to research from blockchain analytics and RegTech company Coinfirm.

  • In a blog post Friday, Coinfirm said it has found "substantial funds" left in wallets by government agencies that may still be accessible by criminals.
  • The post cites as an example the recent seizure by the U.S. Justice Department of over $1 billion in bitcoin said to have been hacked from defunct dark market Silk Road.
  • An anonymous character, "Individual X," is said to have helped the DoJ obtain access to the wallet and in return walked away with no charges.
  • However, Coinfirm said it tracked the funds to other wallets for cryptocurrencies that were forked from bitcoin and found that these funds have not been seized.
  • Forking is when a blockchain splits into two different versions, sometimes creating a new cryptocurrency in the process.
  • Coinfirm said it had found wallets related to the Silk Road assets for the forked coins bitcoin private, bitcoin diamond and super bitcoin, which together contain a total of $387,000 in those cryptocurrencies.
  • "Whoever has access to the private keys of the main wallet, would still have access to these funds," Coinfirm said. 
  • The company said it has further found "dozens of cases" in which authorities may have left funds accessible to suspects "instead of properly accounting for and seizing those assets."
VolumeMuteUnmute

Guild of Guardians Built to 'Win' the Web2 Mobile Space: Game Director

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0

    • See also: US Government Darknet Drug Raids Seize $6.5M in Cash and Crypto

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.

    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.