In an astonishing revelation, law enforcement had inadvertently overlooked a staggering $3.6 billion in cryptocurrency, stored in a Google spreadsheet. This oversight emphasizes the urgent need for better tools to manage and recover digital assets, a gap that Miami-based startup CAT Labs aims to fill.
Founded by former DEA crypto agent Lili Infante, CAT Labs is committed to developing technologies that empower law enforcement to uncover, seize, and secure cryptocurrencies before they are lost or laundered.
The startup’s flagship product, Recovery CAT, scours seized data from various sources – including phones, laptops, and cloud drives – to identify critical information such as wallet addresses, private keys, and seed phrases. The primary objective is to prevent digital currencies from fading away into the digital void.
“There’s billions just sitting in evidence lockers – untouched because agencies don’t even know what they’re holding,” Infante said in an interview with Refresh Miami.
With many agencies facing backlogs of forensic data reviews stretching from six months to a year, the imperative to act swiftly couldn’t be clearer. Infante noted, “That’s time for criminals or rogue insiders to act.”
Having previously launched the first cryptocurrency task force for the DEA, Infante recognized the critical tech deficiencies in the current system and decided to address them head-on. She emphasized that in the realm of cryptocurrency, access equates to ownership. “Just laying eyes on a private key gives you control of the funds,” she asserted. It isn’t like traditional banking; there’s no mechanism to reset passwords. Instead, it’s akin to handling cash digitally.
In December 2024, CAT Labs secured a significant boost through a $5.4 million oversubscribed seed round, led by Miami-based VC firm M13 along with Castle Island Ventures, CMT Digital, and Hash3. The funding paves the way for further collaboration with U.S. law enforcement agencies and international counterparts while also facilitating the development of additional technologies aimed at preventing extensive asset losses.
However, the company’s mission extends beyond recovery operations. CAT Labs is preparing for an emerging threat often overlooked in the tech sector: quantum computing. Infante highlighted the potential dangers, saying, “If a quantum computer hits tomorrow, it could break modern encryption in hours. That’s not sci-fi; it’s an active security risk.”
To counteract this concern, CAT Labs is creating a quantum-resistant key vault employing fully homomorphic encryption (FHE). This sophisticated technology enables the secure backup, access, and sharing of sensitive data, such as crypto wallet keys, without the need to decrypt it. Backed by the National Science Foundation and holding a federal SBIR designation, CAT Labs is thus positioned to engage directly with U.S. government agencies.
Infante is keenly aware of the policy landscape required to operationalize these tools effectively. She remarked, “Right now, one analyst can see a private key and walk away with millions. That’s a broken system.” This highlights the necessity for protocols, audit trails, and a thorough reassessment of digital custodial chains.
“There’s no point in building the best tools if there’s no mandate to use them,” she stressed. “Policy is the unlock.”
In March, CAT Labs gained international recognition when Infante accepted the Startup Innovation Award at the 2025 World Police Summit in Dubai. Competing against over 200 startups, the company was honored for its cutting-edge technology in digital asset recovery and post-quantum security.
With a rapidly expanding team of 20 employees, several located in South Florida, CAT Labs is on a growth trajectory. Yet, for Infante, the focus isn’t solely on speed. It’s a commitment to remaining vigilant and proactive.
“We’re always going to be in a cat-and-mouse game with crime,” she reflected. “Our job is to make sure we’re never more than one step behind.”
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