Research: The scale of encryption assets associated with illegal activities and accessible to law enforcement has exceeded $75 billion, and countries may follow the United States in using confiscation as a reserve.

On October 9, according to a report by Bloomberg, research from Chainalysis shows that crypto assets related to illegal activities, which are "on-chain" and within the reach of law enforcement agencies in various countries, have exceeded $75 billion. Governments may learn from the U.S. regarding confiscation as reserves. U.S. Treasury Secretary Scott Bansen stated in August this year that the U.S. has currently seized Bitcoin worth approximately $15 billion to $20 billion. Chainalysis found that by 2025, the on-chain balance of illegal entities is nearly $15 billion, with downstream wallets (at least 10% of funds come from crime) holding over $60 billion. Cryptocurrency controlled by dark web market managers and suppliers exceeds $40 billion, and among the $15 billion directly held by illegal actors, Bitcoin accounts for about 75%. Together with Ether and stablecoins, this has surged 359% compared to five years ago, with downstream wallets showing similar trends and dark web-related wallets experiencing a compound annual growth rate of over 200%. However, whether authorities can obtain this $75 billion remains questionable. Despite significant increases in enforcement efforts against crypto crime in recent years, the skills, international cooperation, and funding required to identify, track, and confiscate criminals' digital assets remain a challenge.