Chainalysis and the Fight Against Criminals

The recent rise of Cryptocurrency as a payment method for crime-related transactions is cause for concern. Many crimes, including those that transnational criminal organizations and drug cartels perpetrate, use this method to extract a ransom. Chainalysis has been fighting against criminals that use the deep web to buy and sell drugs, weapons, and other illegal items since 2012. Michael Grønager is the founder of Chainalysis. He developed the data platform that is now the cornerstone of Chainalysis products today using his expertise in managing large data projects for scientists and his crypto knowledge from the industry’s early days. Jonathan Levin, an IT consultant, is his cofounder. Jonathan, an economist by training, believed that entrepreneurship was the most effective approach to addressing the most fundamental problems regarding how and why people transfer money. Crime-Related Cryptocurrency Transactions Last year, crypto-related crime was at an all-time high, reaching $14 billion in digital currency. However, while this number may seem large, it is far smaller than the $4 billion stolen last year. While this number does not include the cost of recovering stolen funds, it does illustrate how cryptocurrency can help protect victims. It’s been widely known that transnational criminal organizations are now turning to cryptocurrency as a payment method. For example, Colombian and Mexican drug cartels now use cryptocurrency ...