What is seized cryptocurrency?

Seized cryptocurrencies can be defined as digital currencies such as Bitcoin and Ethereum seized by government agencies. This usually happens during an investigation into different illegal activities involving money laundering, tax evasion, cybercrime, and drug trafficking. Since cryptos and their transactions are anonymous and can easily cross borders, they have attracted the medium of carrying on illegal operations. This causes an increase in the regulatory body’s scrutiny.

For example, in 2021, the United States Department of Justice seized Bitcoins valued at over $2.3 million that were allegedly related to ransomware attacks against Colonial Pipeline, the nation’s largest fuel supplier. Such a significant case shows the improvement in the ability of the US government to track and trace cryptocurrencies; however, such an ability continues to evolve.