Komainu takes crypto custody for UK police

Komainu takes crypto custody for UK police

Cooperation with crypto company allows UK police forces to take custody of seized cryptocurrencies.

Crypto custodian Komainu has been appointed by UK authorities to take custody of seized crypto funds.

Komainu is a joint venture between Japanese investment bank Nomura, crypto custodian CoinShares and wallet manufacturer Ledger. As the company now announces, it has been tasked with „securely storing cryptocurrencies confiscated in the Bitcoin Era course of investigative processes“. It is working for the law enforcement agencies of England, Wales, Northern Ireland and Scotland after winning a tender from the Derbyshire Constabulary in the East Midlands.

The announcement also says that it is working in partnership with CoinShares and Gentium, a consultancy specialising in financial and cyber crime.

„Special cybercrime units at local, regional and federal level regularly seize funds during their investigations and therefore urgently need a way to store these funds with a regulated service provider,“ Assistant Commissioner Angela McLaren of the City of London Police explains in this context.

She adds:

„Komainu provides our units with the technology and security required to hold cryptocurrencies and other digital assets in their investigations.“

McLaren stresses that the collaboration between the crypto custodian and law enforcement is an important step in „denying criminals the profits from their crimes“.

In addition, it would also minimise the financial burden on authorities to find adequate custody facilities

More and more law enforcement agencies are seizing crypto funds from illegal activities. As recently as December, Chinese police confiscated $4.2 billion from the fraudulent crypto project PlusToken. The US Department of Justice, meanwhile, has seized 69,370 BTC from a person who in turn captured them from the illegal darknet trading platform Silk Road. The value of the funds is now equivalent to almost 2.1 billion US dollars.