Chainalysis
{{Short description|American blockchain analysis company}}
{{Infobox company
| name = Chainalysis, Inc.
| logo = File:Chainalysis-logo-monochrome.svg
| logo_caption =
| logo_upright =
| logo_alt =
| type =
| industry = Blockchain analysis
| predecessor =
| founded = {{Start date and age|2014}}
| founders = Michael Gronager
Jan Møller
Jonathan Levin
| defunct =
| fate =
| successor =
| hq_location_city = 114 Fifth Avenue. New York City, New York
| hq_location_country = United States
| area_served = Worldwide
| key_people = Jonathan Levin, CEO
| products =
| owner =
| num_employees = 900{{Cite web |title=Chainalysis |url=https://www.forbes.com/sites/stevenehrlich/2023/02/01/chainalysis-to-lay-off-48-of-staff-as-crypto-winter-bites-into-private-sector-demand/ |access-date=2023-04-18 |website=Forbes |language=en}}{{Cite web |title=Crypto-Sector Firm Chainalysis Cuts Jobs in Reorganization (1) |url=https://news.bloombergtax.com/crypto/crypto-sector-firm-chainalysis-cuts-jobs-in-reorganization-1 |access-date=2023-04-18 |website=news.bloombergtax.com |language=en}}
| num_employees_year = 2023
| parent =
| website = {{Official URL}}
}}
Chainalysis is an American blockchain analysis firm headquartered in New York City.{{Cite web |title=Chainalysis doubling headquarters size with 4-floor lease in the Flatiron district |url=https://www.bizjournals.com/newyork/news/2022/01/19/chainalysis-doublizing-headquarters-size-flatiron.html |access-date=2022-04-09 |website=www.bizjournals.com}} The company was co-founded by Michael Gronager, Jan Møller and Jonathan Levin in 2014,{{Cite web |title=Success story: Chainalysis |url=https://rise.barclays/success-stories/success-story--chainalysis0/%2Fcontent%2Fthinkrise-com%2Fen%2Fhome%2Fsuccess-stories%2Fsuccess-story--chainalysis0 |access-date=2022-04-09 |website=Rise created by Barclays |language=en}}{{cite book |last1=Greenberg |first1=Andy |title=Tracers in the Dark: The Global Hunt for the Crime Lords of Cryptocurrency |date=January 16, 2024 |publisher=Knopf Doubleday Publishing Group |isbn=978-0-593-31561-3 |page=101 |url=https://books.google.com/books?id=hL_BEAAAQBAJ&pg=PA101 |language=en}} and is the first start-up company dedicated to the business of Bitcoin tracing.{{Cite magazine |date=2022-12-08 |title=How Investigators Are Tracing Crypto Criminals |url=https://time.com/6239364/crypto-criminals-andy-greenberg/ |access-date=2023-04-22 |magazine=Time |language=en}} It offers compliance and investigation software to analyze the blockchain public ledger, which is primarily used to track virtual currencies. Along with banks and brokers{{Cite web |title=Chainalysis Customers |url=https://www.cbinsights.com/company/chainalysis/customers |access-date=2023-08-23 |website=www.cbinsights.com}} its customers have included the United States Federal Bureau of Investigation, Drug Enforcement Administration, and the Internal Revenue Service Criminal Investigation, as well as the United Kingdom's National Crime Agency.{{Cite magazine |last=Greenberg |first=Andy |title=How Bitcoin Tracers Took Down the Web's Biggest Child Abuse Site |url=https://www.wired.com/story/tracers-in-the-dark-welcome-to-video-crypto-anonymity-myth/ |magazine=Wired |language=en-US |issn=1059-1028 |access-date=2022-04-09}}
History
Chainalysis was formed to be the official investigator of the hack of cryptocurrency exchange Mt. Gox when Gronager was the COO of Kraken, which was then employed by the bankruptcy trustee for Mt. Gox to investigate the hack.{{Cite web |date=26 March 2021 |title=Crypto boom continues as Chainalysis raises $100M, doubles valuation to over $2B |url=https://techcrunch.com/2021/03/26/chainalysis-raises-100m-doubles-valuation-to-over-2b/ |access-date=2022-04-09 |website=TechCrunch |language=en-US}}Tom Redmond. (20 September 2022). "The $8.6 Billion Startup That Helps Governments Trace Crypto". [https://www.bloomberg.com/news/articles/2022-09-21/crypto-tracer-chainalysis-busts-bitcoin-btc-anonymity Bloomberg website] Retrieved 22 September 2022. The company was co-founded by Michael Gronager, Jan Møller and Jonathan Levin in 2014.
The company developed proprietary financial crime investigation software which monitors cryptocurrency's public ledger, forming the first full view of transactions on the blockchain.{{Cite news |last=McMillan |first=Robert |title=The U.S. Cracked a $3.4 Billion Crypto Heist—and Bitcoin's Anonymity |url=https://www.wsj.com/articles/bitcoin-blockchain-hacking-arrests-93a4cb29 |access-date=2023-04-17 |newspaper=Wall Street Journal |date=12 April 2023 |language=en-US}}{{Cite web |last=Wolf |first=Brett|date=2020-12-23 |title=US law enforcers partner with cryptocurrency tracking firm to fight financial crime |url=https://www.thomsonreuters.com/en-us/posts/investigation-fraud-and-risk/cryptocurrency-financial-crime/ |access-date=2023-04-17 |website=Thomson Reuters Institute |language=en-US}}
In March 2021, it partnered with crypto compliance company Notabene to comply with the FATF's Travel Rule across jurisdictions.{{Cite web |last=Team |first=Chainalysis |date=2021-03-15 |title=Notabene and Chainalysis Partner to Bring Scalable Travel Rule Solution to Cryptocurrency Businesses |url=https://blog.chainalysis.com/reports/chainalysis-notabene-travel-rule-integration/ |access-date=2022-08-16 |website=Chainalysis |language=en-US}} American business publication Fast Company referred to this partnership one of the top 10 most innovative joint ventures of 2022.{{Cite web |last=Lidsky |first=David |date=2022-03-08 |title=The 10 most innovative joint ventures of 2022 |url=https://www.fastcompany.com/90724420/most-innovative-companies-joint-ventures-2022 |access-date=2022-08-24 |website=Fast Company |language=en-US}}
In May 2024, Chainalysis moved its regional headquarters for the Southern Europe, Middle East, Central Asia, and Africa regions to Dubai.{{Cite web |last=Release |first=Press |title=Global blockchain intelligence leader, Chainalysis, establishes regional HQ in Dubai |url=https://www.zawya.com/en/press-release/companies-news/global-blockchain-intelligence-leader-chainalysis-establishes-regional-hq-in-dubai-wr2l91jg |access-date=2024-05-09 |website=www.zawya.com |language=en}}
Noted investigations
Chainalysis has helped law enforcement recover cryptocurrencies from illegal enterprises, including, in 2020, assisting law enforcement to recover over $1 billion from the take-down of the dark web marketplace Silk Road.{{Cite web |last=Browne |first=Ryan |date=2021-03-26 |title=Bitcoin sleuthing start-up Chainalysis doubles valuation to $2 billion with Benioff backing |url=https://www.cnbc.com/2021/03/26/chainalysis-doubles-valuation-to-2-billion-with-benioff-backing.html |access-date=2022-04-09 |website=CNBC |language=en}}
In October 2019, the company helped the United States Department of Justice shut down the world's then-largest child abuse website.{{Cite magazine |last=Greenberg |first=Andy |title=Inside the Bitcoin Bust That Took Down the Web's Biggest Child Abuse Site |url=https://www.wired.com/story/tracers-in-the-dark-welcome-to-video-crypto-anonymity-myth |magazine=Wired |access-date=2022-10-30}}
It also aided in the attribution of seven 2021 cryptocurrency thefts to the North Korean Lazarus Group.{{Cite magazine |last=Greenberg |first=Andy |title=North Korean Hackers Stole Nearly $400M in Crypto Last Year |url=https://www.wired.com/story/north-korea-cryptocurrency-theft-ethereum/ |magazine=Wired |language=en-US |issn=1059-1028 |access-date=2022-04-09}}
Working with American investigators and the South Korean National Intelligence Service, the company tracked $100 million stolen from a California cryptocurrency firm Harmony to North Korean hackers, who have stolen billions of dollars from banks and cryptocurrency firms, funding its illegal missile program. $1 million of the stolen funds were recovered in April 2023.{{Cite web |last=Lyngaas |first=Sean |date=2023-04-09 |title=Inside the international sting operation to catch North Korean crypto hackers {{!}} CNN Politics |url=https://www.cnn.com/2023/04/09/politics/north-korean-crypto-hackers-crackdown/index.html |access-date=2023-04-21 |website=CNN |language=en}}
See also
References
{{Reflist}}
Further reading
- {{Cite book |last=Greenberg |first=Andy |url=https://www.worldcat.org/oclc/1298713583 |title=Tracers In The Dark : The Global Hunt for the Crime Lords of Cryptocurrency |date=2022 |isbn=978-0-385-54809-0 |edition=1st |location=New York |oclc=1298713583 |authorlink=Andy Greenberg}}