UK police will use the Komainu service to store confiscated cryptocurrencies

The UK police have chosen the Komainu custodial service to store confiscated digital assets. The service was developed by Nomura Holdings together with Ledger and CoinShares.

The police of the English county of Derbyshire said that they are working with the custodian Komainu as part of the implementation of the program to combat cybercrime. The program also involves raising police awareness about cryptocurrencies, how they can be used by criminals, and what opportunities open up to operational authorities tools like Komainu. The service, which received a license from Jersey regulators in November 2019, will store cryptocurrencies confiscated by police during crime investigations.

A few years ago, the National Crime Agency (NCA) said that the likelihood of money laundering through cryptocurrencies is “relatively low.” However, the British police noted that cases of confiscation of digital assets in the country have become more frequent, as well as their volumes. So, six months ago, the UK authorities seized $2.29 million belonging to a local “cryptocurrency drug lord” Paul Johnson (Paul Johnson). Therefore, the police need secure options for storing confiscated cryptocurrencies.

“A significant part of cybercrime in the country is related to virtual assets. We need a special solution for storing them, as we are talking about large amounts of money, ” said Phil Ariss, head of the UK Cybercrime program.

He added that earlier law enforcement agencies used different options for storing seized crypto assets, but their safety was not guaranteed. The police were forced to look for other solutions, and decided on the Komainu custodial service, considering it the safest. The choice was approved by Gentium, a UK-based law enforcement consulting firm focused on cybersecurity.

Jean-Marie Mognetti, executive director of CoinShares and director of Komainu, said that the service will become a secure “repository” of confiscated cryptocurrencies, and CoinShares will help convert them into fiat currency in the event of a successful prosecution. According to Mognetti, Komainu is well suited for this purpose, as the service was created specifically for institutions. When a product is developed for institutional investors, it can also be used by government agencies.

Recall that in early 2019, the auction house Wilsons Auctions in Northern Ireland held the first online auction in the UK, selling 167.69 XMR seized from criminals.