A new debate surfaces surrounding the credibility of blockchain analysis tools. Specifically, Chainalysis, a Wall Street-backed blockchain analytics firm, has found its core software under severe scrutiny.
A new inquiry calls into question the reputation of the company and the future of crypto investigation techniques.
Is Chainalysis’ On-Chain Analytics Reliable?
Chainalysis rose to prominence by offering software tools that aid law enforcement in tracking the flow of potentially illicit crypto funds. Its clientele is robust, with government agencies spanning 50 countries among its 1,200 customers. But now, a high-profile case severely challenges the firm’s legitimacy.
At the heart of this whirlwind is Roman Sterlingov, a Swedish-Russian dual citizen, arrested for allegedly operating Bitcoin Fog. According to court documents, this service aided in obscuring crypto transactions for criminal activities over a decade.
Indeed, Bitcoin Fog handled over 1.2 million Bitcoin, worth roughly $335 million during the transaction period. Most of this cryptocurrency originated from darknet marketplaces and was linked to illicit drug activities, cyber fraud and misuse, and identity theft.
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Notably, when the US cyber sleuths set out to unmask Bitcoin Fog’s operator, Chainalysis’s software was their tool of choice, analyzing many Bitcoin Fog transactions. But was this reliance misguided?
As Sterlingov’s trial approached, his defense mounted a notably vigorous and public challenge against Chainalysis’s methodologies.
Lawyers Claim Chainalysis Is “Junk Science”
Attorney Tor Ekeland spearheads this offensive, having gone on record to
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Author: Bary Rahma
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