So I just saw this news about the government seizing a billion in crypto. But like, how does that really happen? I can find tons of articles but nothing explains the process. Does it mean they got someone to give up their wallet access, or can they take control somehow? I need a detailed breakdown.
They definitely made someone give them access to the wallet... So yeah, they can't just brute force their way in or anything. If the private keys are encrypted, they’re stuck.
Right? The only way to access those funds is by owning the wallet's private keys. So it’s likely someone was arrested, and they got them to spill the info on accessing the coins.
If you read what they wrote, they explain a lot of this. Basically, it all leads back to someone from Silk Road who sent stolen BTC to an exchange. Dumb move.
I wonder if they just grabbed his devices and lucked out with unencrypted wallets or something... but that quote about ‘consenting’ makes me think they scared him into revealing the keys.
Depends, if the coins were stored in a wallet, they can’t really call it seized without the keys. If it’s on an exchange, though, it’s way easier for them to freeze that.
Totally with you on that. They’re either taking the keys by force or getting compliance from the owner. If the coins are with a government-compliant exchange, it can easily be frozen.
True. Big holders usually keep a low profile. But if you get investigated, the data gathering can be intense. It’ll only get crazier as they monitor those old wallets.
During investigations, they sometimes just find private keys lying around. Or owners might just give them up to dodge bigger issues. That’s how they get to seizing those assets.