Today’s government crypto-inquiries go far beyond the use of bitcoin in black markets for drugs; they now include investigations into ransomware attacks, terrorist organisations, and nation-state hackers. Chainalysis is a hidden power in many of these investigations, whether it be through its software data-sets or human investigators, and is led by CEO Michael Gronager.
According to official documents, Chainalysis’s government business has a worth in the tens of millions.
The demand for investigative services among authorities has increased along with the rise in crypto crime. To better meet the demands of its major clients, Chainalysis, the industry leader in such services, divided up its business structure as a result. Hence, the new division is called Government Solutions.
According to the business, America’s jumble of state, municipal, and federal agencies collectively purchase more Chainalysis software than anybody else. The majority of Chainalysis’ revenue is driven by them: by offering data tools that clarify who is sending bitcoin and other cryptocurrencies to whom, and where, they help to simplify the industry. It’s how the government manages the $14 billion criminal crypto market, which Chainalysis valued last year.
The Drug Enforcement Administration said in a 2019 investigation that its investigators have been able to see how bitcoin transactions are carried out, how they can be used to identify targets and the bitcoin exchanges they are using, and how to subpoena the exchanges for personally identifying information and bank information of targets.
As per Erin Plante, senior director of investigations for the company, the separation between Government Solutions and the Chainalysis mothership will aid in preventing client conflicts of interest.
Plante says that the subsidiary will begin operations with 90 of the company’s 110 staff investigators, many of whom have security clearances. She claimed that the corporate division makes it simpler for those on-chain sleuths to collaborate with agents who are eager for assistance. Government Solutions will be led by Eric Scofield, whose data consultancy, Abaxx Associates, was bought by Chainalysis in February.
On-chain inspections are becoming more efficient at government organisations, she claimed. She said that Chainalysis engineers assist in the development of their proprietary investigative tools, which include the incorporation of Chainalysis data sets.