Chainalysis, a blockchain crime-fighting firm has expanded its blockchain watchdog operations to educating banks, governments, and other financial institutions in the understanding of core blockchain security measures and safety precautions.
The New York-based blockchain firm was set up to detect cybercrimes on the blockchain and has been doing that for about three years. As one of its core functionalities, Chainalysis tracks down records of blockchain hackings and thefts of all kinds which have to lead to the arrests of over 300 cybercriminals in the United States.
Blockchain Crime, An Increasing Problem
Activities of theft and hackings have grown more within the last year with loss reaching as much as $1 billion dollars in 2018. This has lead to the liquidation of cryptocurrency exchanges and a huge loss for investors. Also, many undocumented blockchain startups have made way with investors’ funds after presenting some eye-catching business propositions and jaw-breaking Returns On Investments (ROI) which often lead to a successful token sale.
While such activities increased over the years, Chainalysis earned itself some reputation by fighting against cybercrimes relating to the use of the blockchain and has also gained some competitors along the line.
Further Blockchain Safety Measures
Now, from blockchain crime-fighting, Chainalysis has set course for educating banks, government agencies, and other financial institutions on successful blockchain adoption and safety measures. This is in accordance with a wide believe that banks must either adapt to the new blockchain developments which seem to have caught the eyes of many or be left behind.
According to Jonathan Levin, co-founder of Chainalysis,
“We’re now helping banks understand how they can build programs to allow cryptocurrency businesses to access banking services, but also make sure there’s no illicit activity going on, ”
Chainalysis Joins The League Of Next Billion-Dollar Startups
As Chainalysis grow in activities and revenue, the company had made around $8 million dollars by the end of 2018. With $53 million dollars venturing funds from the likes of Accel and Benchmark, the cybercrime firm was featured in Forbe’s Next Billion-Dollar Startups list. This new milestone placed chainalysis as the first block chain startup to be so recognized.
Chainalysis is now vacillating between blockchain crime-fighting and regulatory compliance. The firm is set to make sure that cryptocurrency startups well comply with regulations and total documentation. This practices, according to Levin would help governments regulate cryptocurrencies, and also protect investor’s interests.