Eisen Raises $10M to Help Crypto Firms Recover Dormant Accounts Before State Seizure

A startup focused on a little-known but costly regulatory risk for crypto and fintech companies has secured $10 million in Series A funding. Eisen, which specializes in escheatment — the process by which unclaimed assets are turned over to state governments — announced the round, bringing its total funding to $18.5 million, as first reported by Fortune.

What Is Escheatment and Why Does It Matter for Crypto?

Escheatment laws require financial institutions to transfer dormant or unclaimed assets to state treasuries after a certain period of inactivity. While traditionally applied to bank accounts and safe deposit boxes, these laws increasingly apply to cryptocurrency exchanges, securities platforms, and fintech apps. Alan Osgood, CEO of Eisen and a former Coinbase executive, explained that when users lose access to their accounts or simply forget about them, the platforms holding those funds are legally obligated to hand them over to the state. Once transferred, he noted, governments rarely return the assets to the original owners.

The Scale of the Problem

Osgood highlighted a growing crisis: many investor accounts created during the 2021 crypto bull market have since gone dormant. He estimates that approximately $700 million in cryptocurrency will be escheated this year alone. The problem is compounded by the fact that states typically liquidate escheated crypto and stocks immediately upon receipt. This means investors not only lose access to their assets but also miss out on any future price appreciation.

How Eisen Helps

Eisen processes millions of client accounts for financial institutions, navigating a complex patchwork of state-by-state regulations. The company uses proprietary dormant account management technology to locate users before their funds are transferred to the state. By reuniting owners with their assets, Eisen helps platforms reduce compliance risk and maintain customer trust. The new funding will be used to expand its technology platform and scale operations as more crypto and fintech firms face mounting regulatory scrutiny.

Why This Story Matters

For crypto investors, the escheatment risk is a hidden cost of market volatility and forgotten wallets. For platforms, failing to comply with state laws can result in fines, legal action, and reputational damage. Eisen’s approach offers a proactive solution in an area where most companies only react after assets are seized. As regulatory frameworks around digital assets continue to evolve, the intersection of state property laws and cryptocurrency is becoming a critical compliance frontier.

Conclusion

Eisen’s Series A raise signals growing awareness of escheatment as a material risk in the crypto and fintech sectors. With an estimated $700 million in digital assets at stake this year, the company’s technology addresses a clear and present need: keeping users connected to their funds before the state takes control. The funding positions Eisen to become a key infrastructure player in an increasingly regulated digital asset landscape.

FAQs

Q1: What is escheatment in the context of cryptocurrency?
Escheatment is the legal process where unclaimed or dormant assets, including cryptocurrency, are transferred to state governments after a period of inactivity. States then typically liquidate these assets, and the original owners may find it difficult to recover them.

Q2: How much cryptocurrency is expected to be escheated this year?
Eisen CEO Alan Osgood estimates that approximately $700 million in cryptocurrency will be escheated in 2025, largely due to dormant accounts from the 2021 bull market.

Q3: What does Eisen do for financial institutions?
Eisen provides dormant account management software that helps banks, crypto exchanges, and fintech companies identify and locate account owners before assets are required to be turned over to state governments, ensuring compliance and protecting customer assets.