CryptoKitties developer deploys Chainalysis AML solution
Chainalysis KYT flags risky and illicit activity in real-time, while Chainalysis Reactor enables deeper investigations into those transactions.
Dapper Labs, one of the largest blockchain-powered gaming companies (CryptoKitties and NBA Top Shot), has partnered with Chainalysis to obtain a clearer line of sight into the transactions occurring on their platform in order to establish a comprehensive compliance and regulatory management process.
Chainalysis is a leader in AML compliance with its KYT (Know Your Transaction) and Reactor solutions and the partnership comes in good time as the NFT ecosystem explodes, bringing further complexity to the fore.
Growing consumer access to cryptocurrency requires a careful examination of the funds being used to purchase NFTs and the use of a comprehensive compliance monitoring solution that can help detect and prevent NFT money laundering and market manipulation.
Jonathan Levin, Co-Founder and Chief Strategy Officer, Chainalysis, said: “Ultimately, our team at Chainalysis is preparing for a world where all types of value will flow on blockchains: art, gaming, business transactions, and other other uniquely engaging digital experiences.
“We are excited to partner with a market leader in bringing the world of entertainment onto the blockchain, and look forward to helping Dapper Labs scale its compliance processes as the company pioneers new consumer use cases”.
Dapper Labs will be leveraging both Chainalysis KYT and Chainalysis Reactor in order to manage a vast set of their current compliance needs.
Chainalysis KYT flags risky and illicit activity in real-time, while Chainalysis Reactor enables deeper investigations into those transactions.
Naeem Bawla, Associate Director of Compliance, Dapper Labs, commented: “NFTs are one of the most exciting spaces in cryptocurrency, but they will only be successful in the long-term if we can ensure a safe environment for our customers.”
Lana Schwartzman, Chief Compliance Officer, Dapper Labs, said: “We’re thrilled to partner with Chainalysis to keep potential bad actors off our platform, combat money laundering, and at the same time, stay on top of the quickly-evolving local and global regulatory and compliance space. We look forward to partnering with Chainalysis as we bring new digital engagement opportunities to market on the back of the success of NBA Top Shot and CryptoKitties.”
Chainalysis has recently acquired Excygent after collaborating with the firm to support government agencies in investigating several high-profile cyber cases.
Both firms, together as one, will aim to make the space transparent, with the right tools and the right talent. This is Chainalysis’s first acquisition and follows its $100 million Series E fundraise earlier this year.
The $100 million Series E financing was led by Coatue, bringing the firm’s valuation to $4.2 billion. The capital raise will be used to deepen its data advantage by covering more cryptocurrencies and focusing on emerging use cases like DeFi, and launching a Global Intelligence function to more quickly identify warning signs for potential threats and reduce time to response.
