Chainalysis Launches Subsidiary to Support US Government Agencies in Crypto Crime Investigation

Chainalysis, a blockchain analytics company, has launched a subsidiary called Chainalysis Government Solutions, which aims to assist US government agencies investigating crypto-related crimes. In the past, the company has dealt with US government agencies on several separate polls, and a new study by the research firm found that 75% of public sector agencies worldwide are unavailable. prepared to deal with crypto incidents, indicating that a disaster needs relevant resources and technology accessible to investigators.

According to a blog post published by Chainalysis, the new subsidiary will work with law enforcement and government agencies investigating cryptocurrencies, criminal activity, and recovering funds for victims. The post said that the subsidiary will employ about 90 professionals in electronic money investigative, analytical, cybersecurity and data engineering.

The post also adds that Subsidiaries will be led by Eric Scofield, formerly CEO of Abaxx, who has experience working with the US government on investigative and data analytics services.

Having partnered with the US government in transactions worth tens of millions of dollars, Chainalysis has stepped up efforts to assist public authorities in crypto-related investigations. The company has helped agencies through its innovative technology to track blockchain transactions and also provides them with data tools.

The company signed a $625,000 (approximately 4.95 crore) deal with the US Internal Revenue Service (IRS) in 2020 to build a tool to track privacy coins, such as Monero and second layer solutions like Lightning Network.

Four key solutions the company will provide to US agencies have been highlighted in the latest blog. Basically, the company aims to integrate the best data and software tools from the industry. In addition, it will also provide on-chain analytics to provide insight into government organizations.

Michael Gronager, CEO of Chainalysis, pointed out that the dramatic increase in crypto-related crimes has broadened the scope of government investigations. It has gone far beyond the use of Bitcoin in illicit markets. Organizations have begun to target countries and regions hit by ransomware.