Blockchain Companies And Forensic Analysis

Currently, Blockchain analysis is gradually becoming a booming business. For now, the United States Government has used over $6million on purchasing transaction mapping tools.

Moreover, Cryptocurrency exchanges have frequently partnered with some compliance companies to monitor and trace the source of the funds of customers. Basically, Blockchain forensic is not liked by a lot of Bitcoin users, and this has made the issue controversial.

Investments In Blockchain Forensic Companies

Since a lot of Cryptocurrency companies are no longer satisfied with the simple know your customer process like asking for identification files, they have leaned towards the aid of Blockchain forensic firms.

For instance, CoinBase has bought their very own forensic company which is none other than the controversial Neutrino. Blockchain analysis companies have currently raised roughly $80 million and have successfully tapped into a wealthy origin of capital.

However, these companies have gained millions of dollars for profiling Cryptocurrency users alone.

From the &6 million paid by the United States agencies, the block has estimated the IRS to account for 40 percent while ICE accounts for 25 percent and the FBI will account for over 19 percent.

Meanwhile, asides some exchanges that choose to stick with KYC procedures, most of the mainstream platforms utilize Blockchain forensics in a way.

Like CoinBase and Binance, some Cryptocurrency fiat companies like Wirex have also joined the Blockchain forensic train.

Knowing Your Customer Companies

Basically, Blockchain forensic companies track customer withdrawals and deposits for any sign of coins that are tainted. These are coins used in the laundering of money, terrorist activities or drug crimes.

For the majority of the cases, Blockchain forensics tools can link the coins via probabilities. And so, even innocent Cryptocurrency enthusiasts may have their cash frozen or taken by centralized authorities.

Some of the Blockchain forensic companies include;

  • Chainalysis

It is regarded as the best forensic firm. It generates intriguing information and data on missing coins, hodling partners, and so many more. The services offered by Chainalysis includes:

  1. Reporting customers
  2. Cryptocurrency linked activities
  3. Detecting suspicious activities and threats from any dark web

It was established in October of 2014 and had its offices in New York and Copenhagen. Investors in Chainalysis include Point Nine, Digital Currency Group, Funders Club, etc.

  • Elliptic

It is rated among the oldest forensics firms. Basically, elliptic helps in:

  1. Identifying illegal activities going on in Ethereum, Bitcoin and any other Cryptocurrency
  2. Providing actionable intelligence to Cryptocurrency companies, monetary institutions, and even government agencies.

The good works Elliptic does revolve around unmasking terrorist systems. They even helped to track a terrorist fundraiser that received only the sum of 1037 dollars worth of Bitcoin.

It was established in November of 2013 and had its offices in Washington, New York, and London. Some of its investors include Digital Currency Group, Paladin Capital Group, etc.

To Wrap It Up

The intriguing Blockchain analysis instruments are neither good or even bad. It basically depends on how architecture builds the tools.

However, taking notes from the neutrino-Coinbase scandal, whenever the Cryptocurrency community come together to condemn any practice of these companies, they all have the strength to effect positive transformation.


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