Copy link
Increase text size
Decrease text size
Link copied

Chainalysis launches compliance solution for Bitfinex amidst class-action lawsuit

Chainalysis has launched a compliance solution software for Bitfinex that aims to identify suspicious funds and eliminate illicit activities that may be lurking within the exchange.

Image: Chainalysis Facebook

Fri, 13 Dec 2019, 03:23 am UTC

Blockchain analysis firm Chainalysis has announced that it has rolled-out its global anti-money laundering compliance solution for crypto exchange Bitfinex, which is currently embattled in a class-action lawsuit. The solution will help the exchange monitor and analyze any suspicious activities that are happening within its system and track down the provenance of questionable funds, a press release said.

Called the Chainalysis KYT (Know Your Transaction), the software provides real-time tracking of transactions and categorizes them based on risk factors. This allows Bitfinex and authorities to quickly stomp out illicit activities in the exchange, ultimately increasing the customer and regulator trust.

Bitfinex – along with cryptocurrency Tether – has been accused by multiple parties of manipulating bitcoin prices that caused the massive bull run in 2017. Both entities have adamantly denied the accusations and is willing to contest the allegations in court, adding that they will not make any settlement whatsoever.

Scandal after scandal

“To be clear, there will be no nuisance settlements or settlements of any kind reached. Instead, all claims raised across both actions will be vigorously contested and ultimately disposed of in due course. Once they are, Bitfinex and Tether will fully evaluate their legal options against those bringing and promoting the baseless claims,” the exchange said.

Meanwhile, Bitfinex is still trying to acquire the $880 million that is owed by Crypto Capital – its payment processor. But that’s increasingly becoming difficult since funds of the payment processor have been frozen by authorities due to accusations that it laundered money for a Columbian Cartel.

The investigation has landed Crypto Capital Ivan Manuel Molina Lee behind bars, while Crypto Capital Principal Oz Yosef was indicted on three criminal counts by U.S. authorities. Bitfinex said that it wasn’t in collusion with Crypto Capital regarding the aforementioned money laundering as it’s also a victim of the payment processor.

Clearing its name

Moving forward, it appears that Bitfinex wants to clean its name and this partnership with Chainalysis is one of the steps it’s taking to achieve that goal. Commenting on the collaboration, Bitfinex Chief Compliance Officer Peter Warrack said that Chainalysis is the perfect candidate to eliminate criminal activity in the exchange and increase security for its clients.

“Chainalysis is a top-of-the-line, comprehensive and privacy-safe compliance solution aligned with what we were seeking to keep bad actors off of our platform while protecting the privacy of our users. The solution does not share information identifying users, which is kept strictly in-house. We are excited to work alongside the Chainalysis team to continue to build out a safe and robust platform for our users,” Warrack said.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
  • Bitcoin (BTC) $8,453.08 (+0.78%)
  • Ethereum (ETH) $161.91 (-0.43%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Bitcoin Cash (BCH) $323.32 (-3.68%)
  • Bitcoin SV (BSV) $280.89 (-1.25%)
  • Bitcoin (BTC) $8,453.08 (+0.78%)
Jan 24, 2020 (Friday)
Ripple CEO Brad Garlinghouse hints at the possibility of IPO
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
Japan ruling party lawmakers to propose digital yen in February: Report
Hackers becoming more sophisticated as crypto exchanges bolster security measures: Chainalysis
Crypto Technicals: XRP/USD slips below 21-EMA, more weakness to follow
Tether launches new stablecoin backed by physical gold
Crypto exchange ErisX partners with Etale to offer new trading features
World Economic Forum launches blockchain-based supply chain traceability platform
Crypto Technicals: LTC/USD holds above 51 mark, finds strong support at daily cloud
Liechtenstein's Financial Market Authority approves ethereum-based real estate tokenized fund
Greece to extradite alleged BTC-e operator Alexander Vinnik to France after supreme court ruling
Agribusiness blockchain initiative Covantis selects ConsenSys as technology partner
Crypto exchange Binance invests in blockchain startup Numbers
Crypto Technicals: ETH/USD holds above 21-EMA and cloud support, further weakness on charts
Indian IT firm Mphasis to develop blockchain privacy-enhancing tech solutions with QEDIT
Crypto Technicals: BTC/USD extends weakness, eyes next major support at 110-EMA (8134)
Jan 23, 2020 (Thursday)
Amun lists inverse bitcoin ETP on SIX Swiss Exchange
World Economic Forum creates framework to help central banks design and deploy CBDC
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.