Bloomberg: Over $75 billion in cryptocurrency related to illegal activities can be seized by governments as reserves

ChainCatcher news, according to Bloomberg, U.S. President Trump is leading a global push to establish strategic cryptocurrency reserves using assets seized from criminals.

Research by Chainalysis Inc. shows that cryptocurrency assets associated with illegal activities, which are "on-chain" and within the reach of law enforcement, have exceeded $75 billion. Its CEO, Jonathan Levin, stated that this enhances the potential for asset seizure and changes the perspective of various countries. Chainalysis found that by 2025, the on-chain balance of illegal entities will be nearly $15 billion, with downstream wallets (holding at least 10% of funds from crime) possessing over $60 billion.

Cryptocurrency controlled by dark web market managers and suppliers exceeds $40 billion, with $15 billion directly held by illegal actors, of which Bitcoin accounts for about 75%. Along with Ethereum and stablecoins, this represents a 359% increase compared to five years ago. Downstream wallets are similar, with dark web-related wallets experiencing a compound annual growth rate of over 200%.

However, whether authorities can access this $75 billion remains in question. Despite significant increases in law enforcement's efforts to combat cryptocurrency crime in recent years, the skills, international cooperation, and funding required to identify, track, and seize criminals' digital assets continue to pose challenges.