Chainalysis Subsidiary to Assist US Government Agencies With Crypto Crimes
Chainalysis, a blockchain analytics firm, has launched its subsidiary dubbed Chainalysis Government Solutions, which aims to aid US government agencies in investigating crimes related to crypto. The firm has already dealt with US government agencies in the past on a number of separate probes and a new study by the research firm reveals that 75 percent of public sector agencies around the world are not prepared to deal with the crypto incidents, highlighting a dire need for relevant resources and technologies accessible to investigators.
As per a blog post published by Chainalysis, the new subsidiary will work with law enforcement and government agencies investigating cryptocurrencies, criminal operations, and recovery of funds for victims. The post said the subsidiary will employ around 90 experts in cryptocurrency investigations, analysis, cyber security, and data engineering.
The post also adds that the subsidiary will be led by Eric Scofield, previously the CEO of Abaxx, who has experience in partnering with the US government on data analytics and investigative services.
Having collaborated with the US government in deals worth tens of millions of dollars, Chainalysis has increased its effort toward aiding public agencies in investigations related to cryptocurrencies. The company has helped agencies through its advanced technology to track blockchain transactions and also provide them with data tools.
The company signed a $625,000 (roughly Rs. 4.95 crore) deal with the US Internal Revenue Service (IRS) in 2020 for building a tool that tracks privacy coins such as Monero and second-layer solutions like Lightning Network.
Four major solutions that the firm will provide to the US agencies were highlighted in the latest blog. Essentially the company aims to integrate the best software tools and data from the industry. In addition, it will also offer on-chain analysis to offer insight into the government institutions.
Michael Gronager, the CEO of Chainalysis, has pointed out that the significant rise in crimes related to crypto has expanded the reach of government investigations. It has gone far away from the use of Bitcoin in illegal markets. The institutions have started targeting nation-state hacking and areas of ransomware attacks.