Blockchain analytics firm, Chainalysis, has leveraged on its data tools and software strengths to help police and federal investigators probe into the illicit cryptocurrency economy. The blockchain firm launched a subsidiary called Chainalysis Government Solutions, which will be focused helping U.S. Government agencies to investigate crypto crimes following the results of the firm’s recent research which indicates that 75% of public sector agencies in the world are not prepared to handle cryptocurrency incidents.
This deal with the U.S. Government is worth tens of millions and will guarantee that Chainalysis will supply data tools and advanced technology to track blockchain transactions. Back in 2020, the firm had struck a $625,000 deal with the Internal Revenue Service (IRS) to develop a tool for tracking privacy coins in order to help the agency detect and track illicit crypto transactions.
In their latest blog, Chainalysis outlined four major solutions that they will offer to U.S. agencies. With the surge in cryptocurrency crimes, the government’s investigations have gone beyond the use of Bitcoin in illicit markets to areas of ransomware attacks and even even nationwide hacking. The firm will integrate their best software tools and data to provide much-needed insight for government bodies.
The firm also added that because of this new subsidiary, they will increase their headcount from it’s current size of 110 employees (which includes 90 forensic investigators) to almost double of that amount in the next six to twelve months. The data analytics giant reached a total valuation of $8.6BN after raising $170 Million in May.
Their new subsidiary will come into the picture because their recent survey revealed that 74% of employees at public agencies don’t believe that they are adequately equipped to investigate crypto crimes. The rise in DeFi activity is also challenging for many investigators to probe into because many public agencies have not adopted any specialized blockchain analytical tools that are important for investigative work.
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