BailSafe Australia operated an independent GPS monitoring service for accused offenders in Victoria and NSW but shut down more than a week ago.
Police and justice authorities in both states were not informed of the Melbourne-based company's closure.
Eight alleged offenders were supposed to be monitored by BailSafe in Victoria and another 20 in NSW.
The shutdown did not impact Victoria Police's regular compliance checks but state Attorney-General Sonya Kilkenny said agencies were still working to pinpoint the eight offenders.
"Victoria Police and the Office of Public Prosecutions are working together to identify those people," she told reporters on Thursday.
"And also to identify and take the most appropriate course of action, which may include revocation of bail ... (or) police door-knocking."
Ankle monitoring is typically reserved for offenders accused of serious crimes, with more cashed-up individuals offering to hire private firms to increase their prospects of being granted bail.
Victoria will end the practice after the scandal, Ms Kilkenny confirmed.
"That is extremely concerning, and I will be putting a stop to it," she said.
Ms Kilkenny refused to comment on the nature of the alleged offenders' crimes, saying the matters were before the court.
She was unaware how many private companies were offering the services in Victoria and admitted the government was tipped off to BailSafe's shuttering by the media.
"No we haven't lost control (of the bail system)," she said.
Victoria Police was informed of the closure on Wednesday.
NSW authorities were also caught on the hop, with the company's sudden shutdown sparking an urgent review by the Department of Communities and Justice.
More than 20 defendants on bail were found to be wearing BailSafe ankle monitors and were referred to police for further action, NSW Attorney-General Michael Daley said.
Victorian shadow attorney-general Michael O'Brien said the Allan government had dropped the ball and failed to properly regulate the sector, calling it the "Wild West".
"You'd be better off putting an AirTag on some of these people," Mr O'Brien said.
"At least you might have a chance of tracking where they are, because Labor has had an absolute bail fail."
A trial of ankle monitoring for up to 50 repeat youth offenders on bail is expected to be rolled out in Victoria in coming months.
BailSafe Australia could not be reached for comment, with its website, listed email address and phone line no longer functional.
It comes as the Victorian government faces mounting criticism over a review of bail laws after Ms Allan signalled the current arrangements might be too soft.
Victoria tightened bail laws in 2018 after James Gargasoulas drove into Melbourne's busy Bourke Street Mall in 2017 while on bail, killing six people and injuring dozens more.
The changes were found to be a "complete and unmitigated disaster" in a coronial inquest into Aboriginal woman Veronica Nelson's 2020 death.
In a separate inquiry into Victoria's criminal justice system, the Yoorrook Justice Commission consistently heard bail laws were "punitive, harsh and harmful" to Aboriginal people.
The government must use the commission's 2023 justice report in its review, Yoorrook chair Eleanor Bourke said.
"It must implement Yoorrook's 46 evidence-based recommendations in full, including in relation to bail," she said.
Police Minister Anthony Carbines suggested the review was not formal, contradicting Ms Allan, who confirmed she expected to announce the outcome within three months.
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