Blockchain intelligence platform, Chainalysis today unveiled a new solution aimed to help public and private agencies conduct blockchain analysis as a way to specifically track, store, and ultimately sell seized cryptocurrency assets.
The news came barely a week after US authorities disclosed that they leveraged Chainalysis investigative assistance to seize more than $1 billion worth of bitcoin associated with Silk Road, the shady dark web marketplace that it took offline in 2013.
The Department of Justice (DOJ) said it was assisted in seizing the Bitcoins by Chainalysis to identify and investigate the cryptocurrency wallets used in that case. The department estimates that Silk Road generated around 600,000 Bitcoins in commissions for facilitating narcotics sales of illegal drugs, weapons, and other nefarious goods.
“As cryptocurrencies become more mainstream, they will increasingly be used by good and bad actors alike. Chainalysis is dedicated to building trust in digital assets, and that means helping to detect and investigate the illicit activity. As our government partners become more successful in rooting out bad actors, assisting them with asset recovery and realization is a natural next step,” said Jason Bonds, Chief Revenue Officer at Chainalysis.
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The New York-based crypto compliance startup stated it has grown the number of its customers by 65 percent on a yearly basis thanks to the higher demand on its blockchain surveillance technology from public sector agencies. It had doubled its quarterly revenues during the July to September period.
Chainalysis is also selling its bitcoin-tracing technology and compliance software to banks and brokers to monitor and link digital identities to cryptocurrencies.
Chainalysis has recently onboarded Wyoming’s Division of Banking, the banking regulator responsible for the chartering and supervision of state banks to help the regulator combat money laundering, sanctions violations, and other criminal activities that use digital assets.
Chainalysis’s team of data scientists and programmers are leveraging a wide range of quantitative data sources, including cryptocurrency exchanges and blockchain data sources, to clarify and present the view of the cryptocurrency and blockchain ecosystem.