Komainu to store crypto confiscated by UK law enforcement

Digital asset custodian Komainu is working with authorities in the United Kingdom to store crypto confiscated as part of criminal investigations.

Komainu is a custody venture from Japan-based global investment bank Nomura, digital asset manager CoinShares, and hardware wallet manufacturer Ledger. The firm announced it has made an agreement  to “securely store digital assets seized during the investigatory process” for police forces in England, Wales, Northern Ireland, and Scotland following a commercial tender with the Derbyshire Constabulary in the East Midlands region.

The announcement stated that it has the support of Coinshares as well as Gentium, a consultancy service for law enforcement in the U.K. specializing in financial crime and cyber crime.

“Specialist Cyber Crime Units at local, regional and national level are seizing cryptocurrencies as part of their investigations on a regular basis and desperately needed access to a secure storage solution from a regulated provider,” explained Assistant Commissioner of the City of London Police Angela McLaren.

“[Komainu] will provide teams with the proper technology and security they need to store cryptocurrencies and other digital assets as part of their investigations.“

McLaren added that the agreement between the digital asset custody venture and law enforcement marked progress in “denying criminality the proceeds of crime” and would reduce the financial burden on authorities to find a solution for storing the funds.

There has been an increase worldwide in authorities seizing digital assets connected to illicit activities. In December, Chinese police seized crypto assets worth $4.2 billion from seven people convicted in the PlusToken Ponzi scheme case. In the United States, the Justice Department seized 69,370 Bitcoin from an unnamed individual allegedly connected to the hack of darknet marketplace Silk Road and is reportedly planning to auction the coins.