Chainalysis to Offer Bitfinex with ‘Privacy-Safe’ Tools To Counter Foul Play December 13, 2019 December 13, 2019 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Market NewsDecember 13, 2019 by Kelly Cromley

Chainalysis to Offer Bitfinex with ‘Privacy-Safe’ Tools To Counter Foul Play

Chainalysis, a blockchain analytics firm headquartered in New York, is set to offer cryptocurrency exchange Bitfinex with a solution to guarantee Anti-Money Laundering compliance.

Both companies emphasized that the offered resolution will be ensure privacy and at the same time enable Bitfinex to clamp down on bad players from misusing its platform.

Chainalysis is one of the reputed top notch enterprises in the blockchain intelligence sector, offering solutions such as custom built KYT (Know Your Transaction) tool that facilitates firms, law enforcement agencies and governments to track blockchain transactions and monitor shady illegal operations.

Earlier in 2019, Chainalysis widened its tracking ability beyond Bitcoin (BTC) to include 41 more cryptos such as Ether (ETH), Litecoin (LTC), Bitcoin Cash (BCH), ERC-20 tokens such as Maker Dai (DAI) and (MKR), and several other stablecoins, including Tether (USDT), which is closely associated with Bitfinex.

Bitfinex will supposedly utilize live tracking abilities of Chainalysis technology to recognize vulnerable abnormalities amid a large volume of trades. Mechanized due diligence systems can assist the exchange to set aside resources in a better manner, implement compliance rules and strongly mitigate financial wrongdoings, the media release insists.

After months of prolonged legal issues, Bitfinex has partnered with Chainalysis to fasten its compliance and verifications process.

Bitfinex, Tether and parent company iFinex have been blamed by the New York Attorney General’s office for the loss of about $850 million of client and corporate funds and conceal the supposed shortfall.

Back in October, the US Attorney’s Office for the Southern District of New York prosecuted the kingpin of contentious Panama based suspicious payment processing firm Crypto Capital on three different crimes.

Bitfinex has stated that Crypto Capital had “processed certain funds for and on behalf of Bitfinex for several years.” Bitfinex has claimed that the exchange itself is a victim of the fraudulent operations.

In November, Bitfixed rejected a distinct, fresh case as “mercenary and baseless”. The crypto exchange continues to deny allegations against it, including assertions that Tether’s issuance was utilized to exploit the crypto markets and persistent accusations that the token is not pegged to the US dollar on a 1:1 basis.

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.