The phenomenon of crypto-assets has been a highly debated topic in recent years. Because of their “pseudonomity” and lack of regulations, these virtual goods are increasingly leveraged by criminal groups in their illicit undertakings, ranging from money laundering, scams, drug and human trafficking and terrorism financing. While the EU and some national legislators have taken initiatives on the matter, bespoke criminal procedural laws and digital forensic practices are missing to efficiently carry out seizures and confiscations of crypto-assets.
Against this background, the CRYPTOSAFE project proposes an innovative line of research, combining rigorous theoretical analysis with data stemming from empirical investigations. Also thanks to a direct cooperation with supranational authorities, and digital forensic experts, the study reconstruct the operational profiles of seizures and confiscations of crypto-assets, both at the internal and EU level.
The research will run for two years (December 2023 - end 2025) and is funded by PRIN 2022 PNRR, which is included in the European post-pandemic EU Next Generation Recovery Plan.
Ihe project is divided into three parts: analysis of the relevant national and EU legal bases, including a comparative study of the UK, US and French frameworks; empirical and statistical surveys; and a technological analysis.
Particular attention is also paid to digital forensics best practices (Blockchain forensics) used to identify suspicious addresses/wallets and timely transfer the seized funds to judicial authorities.
Understanding the limits, potential and technical developments of technologies underlying crypto-assets is by now an essential part of criminal investigations, and CRYPTOSAFE will propose blockchain forensics technical guidelines with particular attention to the seizure and confiscation phases.
The project also aims to serve as a cross-sectional collector of statistical information on current practices. Data will be collected from legal operators involved in seizures and confiscations of cryptocurrencies, namely judges, prosecutors, law enforcement and lawyers dealing with the seizure and confiscation of cryptos. The statistical survey will be complemented by a sociological one: questionnaires and interviews will be used to find out how varied practitioners (public authorities to the legal profession and civil society in general) deal with the issues raised by illicit uses of crypto-goods.
With a multi-disciplinary approach and a young and highly motivated research team, the Project is meant to be a forerunner. CRYPTOSAFE fits perfectly with the founding pillars of the PNRR, contributing to the improvement both the efficiency of criminal justice and the safeguard of fundamental rights of accused persons and victims of crime, by examining a pressing issue, not yet addressed in other national research projects and many other ones in the EU.