Leading blockchain data platform, Chainalysis has started a new subsidiary, Chainalysis Government Solutions, to advise U.S. defense, intelligence, law enforcement and civilian agencies.
This newly formed branch of Chainalysis will focus on extending the help required by the US public sector in solving cases involving the recovery of funds for victims, reducing illicit activities, disrupting criminal operations and any other crimes that fall under the crypto and blockchain umbrella by bringing its data, technology and services to U.S. public sector customers, which will be led by Eric Scofield, former CEO of Abaxx, who has experience in partnering with the U.S. government on data analytics and investigative services.
It will work with law enforcement and government agencies investigating cryptocurrencies, criminal operations, and recovery of funds for victims. The subsidiary is said to employ around 90 experts in cryptocurrency investigations, analysis, cybersecurity and data engineering.
The regulation of crypto and digital assets has been a pervasive topic, with Federal Reserve Vice Chair Lael Brainard saying recently there was a need to draw up regulation before there’s a risk of financial instability with the assets.
Brainard, speaking earlier this year at a Bank of England conference in London, said there was clear evidence that digital assets were as risky as regular financial assets, given the recent turmoil, including the failure of coins like TerraUSD and the fact that many crypto companies have frozen withdrawals in the past few months, locking customers out of their finances and bitcoin has seen a drop of over 75% from its high last November.
“It is important that the foundations for sound regulation of crypto financial system be established now before the crypto ecosystem becomes so large or interconnected that it might pose risks to the stability of the broader financial system,” Brainard said, per the report.