Bloomberg: Over $75 billion in cryptocurrencies linked to illegal activities could be confiscated by governments as reserves

PANews reported on October 9th that Bloomberg News reported that US President Trump is leading a global push to build strategic cryptocurrency reserves using assets seized from criminals. Chainalysis Inc. research shows that over $75 billion in cryptocurrency assets linked to illicit activity, "on-chain," and within reach of law enforcement have been allocated. Its CEO, Jonathan Levin, stated that this has increased the potential for asset confiscation and shifted global perspectives. Chainalysis found that by 2025, illicit entities held nearly $15 billion in on-chain balances, with downstream wallets (where at least 10% of funds are criminal) holding over $60 billion. Darknet market administrators and vendors controlled over $40 billion in cryptocurrency. Of the $15 billion held directly by illicit actors, Bitcoin accounted for approximately 75%. Together with Ethereum and stablecoins, this represents a 359% surge compared to five years ago. Downstream wallets have similar figures, with darknet-related wallets experiencing a compound annual growth rate exceeding 200%. However, whether authorities can access this $75 billion remains questionable. While law enforcement efforts to combat cryptocurrency crime have significantly increased in recent years, the skills, international cooperation, and funding required to identify, track, and confiscate criminals' digital assets remain daunting challenges.