The Canadian arm of KPMG has partnered with Chainalysis to help organizations combat the rising crypto crime in Canada.

An X user alleged the existence of contradictions in Chainalysis’ assessment of the crypto terrorism financing narrative.

Chainalysis’ Head of Sanctions Strategy noted that crypto is not a suitable medium for terrorists to move funds.

Chinalysis representative stated the previous $450k figure did not constitute a comprehensive assessment of crypto funds related to any terrorism financing.

Recently, X user “Cryptadamist,” with a notable following on the platform, highlighted alleged contradictions regarding the value of crypto funds in terrorism financing, which blockchain analysis firm Chainalysis had earlier reported.

The X user first recalled when Bitcoin maximalist Nic Carter and other notable figures in the crypto community emphatically asserted that Chainalysis had proved the existence of a mere $450,000 in terrorist financing.

According to Cryptadamist, the analysis firm itself is currently disputing the $450,000. The critic arrived at the claim following a recent podcast featuring the Head of Sanctions Strategy at Chainalysis, Andrew Fierman.

remember when Nic Carter & the rest of the clown car was ranting about how #Chainalysis "proved" there was just $450k in terrorist financing?so why is #Chainalysis on @laurashin's show (correctly) disowning that "research"?https://t.co/jtPduXFxQc

— ⚯ M Cryptadamus ⚯ | @cryptadamist@universeodon.com (@Cryptadamist) November 15, 2023

In the podcast, the host, Laura Shin, asked Fierman to elaborate on Chainalysis research that corrected the claims that terrorists received multi-million dollars in crypto to fund their activities. Part of Fierman’s response was that crypto is not a suitable medium for terrorists to move funds.

Fierman highlighted that the bad actors understood that all crypto transactions are traceable to the last recipient. As a result, they ordinarily would seek to avoid being tracked, as the public could tell the entities they collaborate with.

In response to an inquiry about how Chainalysis arrived at $450,000, Fierman clarified that the amount was an illustrative example tied explicitly to a seizure order. He mentioned that Chainalysis tracked the movement of funds from that associated wallet to other entities.

Furthermore, the Chainalysis representative mentioned that the example did not constitute a comprehensive assessment of how much crypto Hamas or any other entity had received.

The post Critic: Chainalysis Backtracks Previous Claims of $450K Terrorism Funding appeared first on Coin Edition.

A scam tactic called ‘Approval Phishing’ is gaining prominence targeting crypto users. Traditionally, this approach involved targeting victims through the distribution of fraudulent crypto apps. However, in recent years, romance fraudsters, also known as pig butchering scammers, seem to have successfully integrated this method into their strategies.

Chainalysis identified 1,013 addresses engaged in a deliberate form of approval phishing. This process started with a smaller list of recognized approval phishing addresses that employed romance scam tactics. The blockchain analysis firm then found additional addresses tied with those in the initial list through similar transaction patterns.

Approval Phishing Wreaks Havoc

According to the press release shared with CryptoPotato, Chainalysis estimated that victims, including those recognized based on distinct activity patterns, have suffered approximately $1 billion in losses to approval phishing scams since May 2021.

The $1 billion estimate by the firm is based on on-chain patterns and could include laundered scam funds. This figure likely underrepresents the true losses due to the notorious underreporting of romance scams and Chainalysis’ analysis starting from a limited dataset.

The revenue of suspected approval phishing scammers, monitored by Chainalysis, reached its peak in May 2022 when victims lost an estimated $516.8 million to approval phishing, compared to $374.6 million in 2023 through November. Similar to other crypto-based crimes, a small number of highly successful actors drive the majority of approval phishing theft.

Stolen Crypto Funds. Source: Chainalysis

The most lucrative approval phishing address is believed to have stolen $44.3 million from thousands of victim addresses, constituting 4.4% of the total estimated stolen during the studied period. The ten largest approval phishing addresses collectively contributed to 15.9% of all stolen value during this time, while the top 73 accounts were responsible for half of the total value stolen.

How Does Approval Phishing Work?

Approval Phishing Scam Anatomy. Source: Chainalysis

In approval phishing, the scammer tricks users into approving a malicious blockchain transaction. This approval grants the scammer permission to expend specific tokens within the victim’s wallet, enabling them to deplete the victim’s address of those tokens at their discretion.

Chainalysis found that approval phishers typically send the victim’s funds to a separate wallet from the one granted approval to make transactions on the victim’s behalf. The on-chain sequence generally follows this pattern:

Victim address signs the transaction approving the second address to spend its funds.

The second address, which we’ll refer to as the approved spender address, executes transactions to move funds to a new destination address.

If transactions unfold in this manner, with the approved spender address initiating the draining transaction instead of the victim address, as expected in a non-malicious transaction, it is likely a case of approval phishing.

In the case of decentralized apps (dApps) on smart contract-enabled blockchains such as Ethereum, approval phishers exploit the familiarity of many crypto users with signing approval transactions, with the key factor lying in the nature of permissions granted and the reliability of the party receiving those permissions.

The post Chainalysis Reveals $1 Billion in Losses to Approval Phishing Since May 2021: Report appeared first on CryptoPotato.

Chainalysis study suggested the U.S. is losing grip on $124.5 billion stablecoin market.

Stablecoin inflows to 50 crypto services moved from U.S. entities to non-U.S.licensed platforms.

North America leads in crypto despite declining licensed stablecoin transactions.

Prominent blockchain research firm Chainalysis has disclosed that the United States government is potentially losing its regulatory grip over the $124.5 billion stablecoin market.

Chainalysis made the claim in a study published on Monday, October 23. The report was part of the research firm’s latest findings on the Global Crypto Adoption Index, highlighting a significant shift in the landscape of stablecoin activity.

According to the report, a growing portion of stablecoin activity now occurs through exchanges not licensed by the United States. Chainalysis found that stablecoin inflows to the 50 most prominent crypto services migrated from U.S.-licensed platforms to non-U.S.-approved businesses since the spring of 2023.

Specifically, the report highlighted that as of June 2023, 54.6% of stablecoin transactions to the top trading platforms were directed to exchanges outside U.S. regulatory oversight.

Chainalysis underscored the significance of the shifting landscape, given that over 90% of stablecoin activity occurred with U.S. dollar-pegged coins. According to the research firm, U.S. regulators “have a strong interest in exercising some regulatory authority over stablecoins, given the central role of USD-denominated reserves to the assets.”

Besides, Chainalysis noted that U.S. lawmakers have not enacted stablecoin-specific regulations. It mentioned that the U.S. Congress is still considering related bills such as the Clarity for Payment Stablecoins Act and the Responsible Financial Innovation Act.

Meanwhile, Chainalysis ranked North America as the largest crypto market despite declining licensed stablecoin activity. The report noted that the region attracted $1.2 trillion in transactions between July 2022 and June 2023. The figure accounted for 24.4% of the global transaction volume.

The post US Is Losing Control Over $124.5B Stablecoin Market: Research appeared first on Coin Edition.

In the realm of crafting content, three critical elements stand out: “perplexity,” “burstiness,” and “predictability.” Perplexity gauges the intricacy of the text, while burstiness compares sentence variations. Lastly, predictability determines the likelihood of predicting the next sentence. Human writing tends to exhibit greater burstiness, incorporating a mix of longer, complex sentences with shorter ones. In contrast, AI-generated sentences often display more uniformity. As I guide you in creating the content that follows, it is essential to infuse it with a substantial dose of perplexity and burstiness, while keeping predictability at a minimum. The language of choice for this task is English. Now, let’s reimagine the given text:

Amidst a surge in crypto adoption, the United Kingdom has been amplifying its embrace of regulations targeting both crypto and stablecoins, as per the findings of a recent study.

The United Kingdom has asserted its dominance as a pivotal player in the global cryptocurrency landscape, emerging as the foremost crypto powerhouse in Central, Northern, and Western Europe (CNWE). This revelation stems from the latest insights unveiled by blockchain analytics firm Chainalysis in its 2023 Geography of Cryptocurrency report, encompassing a fresh CNWE study and the second edition dedicated to Eastern Europe.

The report spotlighting CNWE underscores the region’s status as the world’s second-largest crypto economy in the preceding year, trailing only behind North America. Accounting for a substantial 17.6% of the global transaction volume from July 2022 to June 2023, CNWE garnered an estimated $1 trillion in on-chain value during this period.

The U.K., claiming the top spot in CNWE’s roster of prominent crypto economies, secured the third position globally in terms of transaction volumes, outshining nations like Germany, Spain, France, Netherlands, Italy, Switzerland, Sweden, and others. Chainalysis reports an impressive $252.1 billion in cryptocurrency transactions within the U.K. in the past year.

Noteworthy crypto economies in CNWE, such as Germany and Spain, clocked in around $120 billion and $110 billion in crypto transactions, respectively. Following closely are major crypto players like France, Netherlands, Italy, Switzerland, Sweden, and others, contributing to the region’s crypto vibrancy.

Crypto analysts had earlier hinted at the burgeoning crypto scene in the United Kingdom, with London, in February, being hailed as the world’s most crypto-ready city for business, surpassing cities like Dubai and New York, according to the crypto tax platform Recap.

This substantial crypto adoption in the U.K. aligns with the country’s proactive approach to cryptocurrency regulations. The U.K. government’s strides toward adopting the Financial Services and Markets Bill involve defining crypto assets within existing financial services legislation and establishing a regulatory framework for stablecoins, such as Tether.

In October 2023, the U.K. Financial Conduct Authority implemented the Financial Promotions Regime, setting a regulated standard for crypto firms to promote their businesses without jeopardizing investor interests. Preceding this, the U.K. had also embraced the U.K. crypto “Travel Rule” in September 2023, mandating crypto asset businesses to collect, verify, and share specific information regarding crypto asset transfers.

In addition to the comprehensive CNWE report, Chainalysis delves into Eastern Europe, labeling it as the fourth-largest crypto market. The region witnessed a substantial $445 billion in crypto transactions from July 2022 to June 2023, contributing 8.9% to global transaction activity during this analyzed period.

While details on the study’s methodology and the types of crypto transactions included remain undisclosed by Chainalysis at present, this article will be updated promptly upon receiving new information.

The post UK leads Central, Northern, and Western Europe in cryptocurrency activity: Chainalysis appeared first on BitcoinWorld.

Coinspeaker Crypto VC Firm C1 Explores Acquisitions in Australia, Targets Animoca Brands and Chainalysis

Crypto venture capital firm C1 is making strategic moves to acquire private holdings in Australia’s crypto market, according to reports from local media, Australian Financial Review, citing a Pitch Deck seen by the company.

The firm, founded by former Coinbase executives, plans to utilize its $500 million fund to purchase secondary shares from prominent companies and local ventures, preferably those with a minimum valuation of $300 million from series C funding rounds.

C1 Eyes Animoca Brands and Chainalysis for Acquisitions

According to the report, the company has set its sights on Animoca Brands and Chainalysis for potential acquisitions, offering investors discounts ranging between 50% and 80% on their last valuation. The firm is ready to write checks ranging from $20 million to $50 million.

Animoca Brands, once listed on the ASX, has transformed into a $7.8 billion private entity since its exit, drawing interest from C1, which is offering to purchase shares at a significant discount. Similarly, Chainalysis, valued at $8.4 billion in 2022, has about $30 million of secondary preferred shares available at a discounted price, according to C1.

The move comes as the crypto market is experiencing a resurgence, fueled by optimistic sentiments around Bitcoin’s (BTC) value surpassing $44,000 for the first time in two years. Anticipation of US regulators approving a BTC spot ETF in January and a technical upgrade to the Bitcoin network in May adds to the positive outlook, attracting attention from institutional players like C1.

The company believes the crypto industry presents highly appealing valuations in the secondary market, given the prevailing market conditions in both the public and private sectors.

“Due to current market conditions in the public and private markets, hyperinflation, and rising interest rates, we believe the digital assets market offers very attractive valuations in the secondary market,” the desk reads.

Despite reports suggesting C1’s planned acquisitions, Dr. Najam Kidwai, a senior executive at C1, has refuted the claims, noting that the venture capital firm has not met any of the companies for potential acquisitions.

“C1 did not authorize this article, and we have not met with either company directly as of this time,” Kidwai said.

Australian Government Adopts New Measures to Regulate Crypto

Australia’s recent regulatory developments in the crypto space coincide with C1’s endeavor to acquire private holdings in the country. In response to the FTX collapse last year, the government has implemented new measures to safeguard consumer interests.

These include a proposed regulatory regime, with an estimated timeline stretching to 2025 for Australian digital asset platforms to obtain operational licenses. Additionally, tax guidelines have been revised to extend capital gains tax to wrapped tokens.

Moreover, authorities have affirmed their decision to defer the introduction of a central bank digital currency (CBDC) for several more years. These regulatory initiatives reflect the government’s commitment to addressing challenges and ensuring a secure and regulated environment for crypto activities in Australia.

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Crypto VC Firm C1 Explores Acquisitions in Australia, Targets Animoca Brands and Chainalysis

Coinspeaker North America Dominates Global Crypto Market with $1.2T in Value

The latest report by blockchain data and software service provider Chainalysis has shown that the global crypto activity is driven by North America where the on-chain market value has reached about $1.2 trillion between July 2022 and June 2023. The region dominates crypto usage despite all the regulatory concerns and scrutiny taking place there.

According to Chainalysis, North America has led the world with 24.4% of global crypto transaction activity which is split relatively evenly between DeFi and centralized exchanges. In addition, North America is still ranked fourth in the 2023 Global Crypto Adoption Index. Notably, most of the crypto activity is driven by the United States, which ranks first overall worldwide.

As highlighted in Chainalysis’ blog post, the regulatory concerns and a chain of negative events like the collapse of the FTX exchange in November 2022 have led to a decline in crypto activity in North America. Besides, there has been a relative decline in North America’s stablecoin usage. Over the period between February 2023 and June 2023, stablecoins’ use fell from 70.3% to 48.8% of the region’s on-chain transaction volume. But again, this negative trend did not affect stablecoins’ status as the most widely-used type of crypto asset, and more than 90% of stablecoin activity takes place in stablecoins pegged to the US dollar.

Chainalysis explained:

“US regulators have a strong interest in exercising some regulatory authority over stablecoins, given the central role of USD-denominated reserves to these assets. Stablecoin regulation also gives regulators a chance to help ensure that the US is home to the cryptocurrency businesses that will play a big role in expanding how the U.S. dollar is used globally as the digital economy continues to grow. However, data suggests that more and more stablecoin activity is occurring through entities that aren’t licensed in the United States.”

The usage of decentralized finance (DeFi) has also significantly declined over the course of the last year, but this trend has been observed globally. What will help in the recovery is wise regulation. Currently, the US Congress is working to advance two promising pieces of crypto legislation aimed at growing the ecosystem safely.

Crypto Adoption in Other Regions

Speaking of other regions, Central, Northern, and Western Europe accounted for 17.6% of the total crypto value received, with the United Kingdom taking the lead and contributing more than double the volume of second-ranked Germany. The UK is ranked 14th in terms of global crypto adoption. DeFi has seen significant growth in France which takes the lead within the European region.

Central and Southern Asia and Oceania accounted for 19.3% of the total value received by cryptocurrency exchanges. India has surged ahead as the global leader in crypto adoption, with around $250 billion in crypto value recorded in the past year. Nigeria and Vietnam followed with a small margin.

In China, where bans have been in place since 2020, the total value of the crypto transactions reached over $75 billion in the 12 months leading up to June, with the majority being handled by centralized exchanges.

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North America Dominates Global Crypto Market with $1.2T in Value

Chainalysis has released a preview of its report on crypto frauds in 2024, with particular attention to the explosive growth of Approval Phishing. In fact, in 2023 alone, 374.6 million dollars were stolen. 

But what is targeted approval phishing?

Chainalysis and crypto fraud: the report on the strong growth of approval phishing in the last two years

In a preview of its new “2024 Crypto Crime Report“, focusing on crypto fraud, Chainalysis discussed the strong growth that approval phishing has experienced in the last two years.

Targeted approval phishing scams are on the rise, with many fraudsters using romance scam tactics to trick victims into signing malicious TXs. We estimate victims have lost over $374M in 2023. Learn more in our first 2024 Crypto Crime Report preview https://t.co/5cRD7VgNrN

— Chainalysis (@chainalysis) December 14, 2023

“Phishing scams targeting approvals are on the rise, with many scammers using romantic scam tactics to trick victims into signing harmful TX. We estimate that victims have lost over $374 million in 2023. To learn more, check out our first preview of the Crypto Crime Report 2024.”

In practice, unlike other crypto scams, with targeted approval phishing, scammers induce the user to sign a harmful blockchain transaction. 

Specifically, the user’s signature gives the scammer’s address approval to spend specific tokens within their wallet, allowing them to empty the victim’s address of those tokens at their discretion. 

Usually, this technique involves three wallet addresses: 

that of the victim who signs the transaction with approval to the second address to spend their funds;

the second address which belongs to the phisher who will execute the transactions and transfer the funds to a third destination address;

the third address will be the one that contains the stolen funds. 

This technique of crypto fraud has seen an explosive growth in the last two years, with at least 374 million dollars suspected to have been stolen in 2023. 

Chainalysis and crypto fraud: the development of dApps is behind the growth of approval phishing

Chainalysis continues to describe the growing technique of approval phishing associating it with romance scams to convince victims to sign approval transactions.

And indeed, behind this strong growth of the last two years of this type of crypto fraud, there is the increase of decentralized applications (or dApps) that require approval signatures to authorize smart contracts. 

Specifically, dApps that use smart contracts, such as Ethereum, require users to sign approval transactions that authorize the dApp’s smart contracts to move funds held by the user’s address.

With this new habit introduced to the user, phishers insert themselves to forward their signature requests for approval of their transactions which are, instead, harmful. 

In the investigations conducted by Chainalysis, it seems that the peak of income for suspected approval phishing scammers occurred in May 2022. In numerical terms, the estimated amount of stolen funds through this crypto fraud for the entire year 2022 should be $516.8 million. 

Not only that, the study highlights that the most successful approval phishing address has likely stolen $44.3 million from thousands of victim addresses. 

Chainalysis and crypto fraud: tips to avoid falling into the approval phishing trap

Chainalysis, the blockchain data platform that provides software, services, and research, has also explored how to address the problem of crypto fraud resulting from approval phishing. 

Through its analysis scheme of the addresses involved in this technique, Chainlysis invites crypto-exchange compliance teams to monitor the blockchain. 

The goal is to identify phishing suspects with a strong exposure to associated destination addresses.

Not only that, more generally, the blockchain platform invites the entire industry to work to educate users not to sign suspicious approval transactions, or to have more awareness of what they are granting.

Phishing attacks and crypto crime

The phishing technique for crypto crime attacks is seeing its evolution. In fact, this romantic phishing scam with approval is added to other phishing techniques such as email campaigns. 

In this regard, last November, email phishing campaigns targeted OpenSea’s NFT marketplace and were aimed at both platform customers and developers.

In this case, while OpenSea has not been hacked in any way, users have received emails from a “fake OpenSea” containing harmful links. Users have reported everything on social media, showing evidence of it. 

On the contrary, however, the phishing attack that occurred in early September targeted Vitalik Buterin’s X account, the co-founder of Ethereum, and resulted in the theft of $700,000 from users.

And indeed, Buterin’s compromised X account was used to promote a fake commemorative NFT coin. Users were invited to mint these NFTs with a limited-time offer. 

Obviously, the provided link led to a phishing website that posed a significant threat to unsuspecting victims, using the “Pink drainer software” tool. 

Among the stolen goods, there was also the theft of a precious Crypto Punk NFT valued at 153 ETH, equivalent to $250,000 at that time. 

Quick take:

C1 Secondaries Fund wants to purchase shares of Animoca Brands at a discount of 62% as per the latest valuation of the stock.

The crypto fund is also eyeing a 63% discounted stake in Chainalysis as per the company’s last valuation.

Although crypto prices have bounded back in the past few months, Web3 funding has continued to fall.

C1 Secondaries Fund, the crypto firm founded by a former Coinbase executive is hunting for bargains in the Web3 space. According to the Australian Financial Review report citing DealStreet Asia, the $500 million crypto fund has identified Animoca Brands and Chainalysis as potential opportunities as it prepares to capitalise on the current market conditions.

C1 Secondaries is prepared to write checks of about $20 million to $50 million to acquire private stakes in companies valued at least $300 million based on their most recent funding rounds. The firm looking for discounts of up to 80% on leading Web3 companies. 

Animoca Brands recently announced an $11.88 million second tranche for its Web3 loyalty project Mocaverse, bringing the total raised to $31.88 million. According to the announcement, the funds were raised by issuing new ordinary shares at a price per share of A$4.50 (~US$2.95). Therefore, buying Animoca Brands shares at $1.12 would represent a  discount of about $62%. The report also indicates that the firm is eyeing a 63% discount on the shares of crypto analytics firm Chainalysis.

C1 Secondaries Fund is capitalising on a rare opportunity where, despite the recent rebound in crypto prices, Web3 funding is still declining. The Bitcoin price has recently rallied to trade above $44,000, while Ethereum topped $2,350. Even with Monday’s sharp pullbacks the trajectory still indicates a bullish crypto market.

On the other hand, Web3 funding has continued to decline over the past several quarters. With just three weeks remaining to wrap up the fourth quarter, Web3 startups have raised $916 million according to CrunchBase’s Web3 tracker. It is unlikely the figure will surpass the $1.3 billion raised in Q3.

These are unique circumstances for Web3 VCs as startups are desperate for funding to take advantage of the recovering market.

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The post C1 Secondaries Fund Eyes Bargain Opportunities in Leading Web3 Companies appeared first on NFTgators .

Coinspeaker KPMG Canada Partners with Chainalysis to Combat Crypto Fraud

The KPMG Canada has announced a strategic partnership with blockchain analytics firm Chainalysis in response to the escalating threats of exploits and fraud within the crypto sector.

Kunal Bhasin, Partner and Cryptoassets and Blockchain Co-leader at KPMG Canada, emphasized that “this collaboration will help to further solidify KPMG’s expertise in forensic investigations and cryptoassets and blockchain technology.”

The KPMG Canada and Chainalysis Approach

As the digital assets ecosystem expands, so does the threat of fraud and criminal activities. The decentralized and pseudonymous nature of blockchain technology has made it an attractive platform for illicit activities such as money laundering, ransomware attacks, and fraud.

Companies operating in the digital assets space face the daunting task of safeguarding their platforms and transactions against these evolving threats. According to the Chainalysis 2023 Crypto Crime Report, crypto-based illicit transaction volume reached an unprecedented $20.6 billion last year.

Notably, the sector faces increasingly sophisticated threats, such as wallet hacks and SIM swaps. A recent high-profile incident saw crypto exchange Poloniex lose approximately $114 million when hackers targeted its hot wallets. besides Poloniex, other platforms have also suffered one form of exploit or the other in the past year.

In response to these escalating threats, KPMG, a renowned global consulting giant, is leveraging its expertise to fortify the defenses of companies operating in the crypto ecosystem. Through this strategic partnership, KPMG aims to provide comprehensive solutions to identify, prevent, and mitigate fraud risks associated with digital assets.

The collaboration is not only geared towards preventing fraud but also towards ensuring regulatory compliance within the digital assets sector. As governments around the world grapple with developing appropriate regulations for the growing crypto market, companies face the challenge of aligning their operations with evolving compliance standards. The collaboration, therefore, seeks to improve their Anti-Money Laundering (AML) compliance processes.

Industry-Wide Collaboration against Crypto Fraud

Meanwhile, the announcement of KPMG Canada’s partnership with Chainalysis coincides with broader industry efforts to tackle fraud associated with crypto. Mastercard Inc (NYSE: MA), in a recent report, revealed its partnership with Feedzai, a regulatory technology platform that employs Artificial Intelligence to combat online money laundering and financial fraud.

Through this collaboration, Feedzai will integrate with Mastercard’s CipherTrace Armada platform, monitoring transactions from over 6,000 crypto exchanges for potential fraud, money laundering, and other suspicious activities.

Remarkably, KPMG Canada has been actively involved in the crypto sector, showcasing its dedication to embracing emerging technologies. Last year, the firm entered the metaverse by establishing its first collaboration hub between its US and Canadian units.

Additionally, KPMG added Bitcoin (BTC) and Ethereum (ETH) to its balance sheet, demonstrating a forward-looking approach to incorporating digital assets into traditional financial strategies. The firm also ventured into the realm of Non-Fungible Tokens (NFTs), purchasing digital art from the World of Women (WoW) NFT collection.

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KPMG Canada Partners with Chainalysis to Combat Crypto Fraud

KPMG Canada partners with blockchain analytics firm Chainalysis to enhance fraud detection and risk management in the rapidly evolving digital assets sector.

KPMG Canada has teamed up with blockchain analytics firm Chainalysis to combat the escalating threat of fraud and criminal activities associated with cryptocurrencies.

We’re teaming up with @KPMG_Canada to provide organizations with a more comprehensive approach to mitigating fraud risks in crypto transactions. Read more:https://t.co/c9Odtt0cXl

— Chainalysis (@chainalysis) November 22, 2023

The partnership is poised to enhance KPMG’s service offerings in blockchain monitoring, governance and risk management, directly targeting the need for stricter compliance with evolving crypto regulations and anti-money laundering initiatives.

Kunal Bhasin, a partner at KPMG Canada, highlights this alliance as a bolster to their forensic investigation capabilities in the realm of crypto assets and blockchain technology.

You might also like: Chainalysis report debunks crypto’s role in terrorism financing

This development responds to the increasing sophistication and frequency of digital asset frauds. The Chainalysis 2023 Crypto Crime Report paints a worrying picture with illicit cryptocurrency transactions reaching a record $20.6 billion last year.

The digital asset sector is grappling with advanced threats, including wallet hacks and SIM swaps. A notable example is the recent $114 million loss incurred by cryptocurrency exchange Poloniex due to hot wallet breaches.

Jonathan Levin of Chainalysis underscored the partnership’s potential, combining KPMG’s in-depth understanding of financial crimes in the crypto space with the Chainalysis advanced risk management platform. The synergy aims to offer a fortified defense against crypto transaction frauds.

KPMG Canada is not new to the cryptocurrency landscape. Its foray into the sector includes significant steps like venturing into the metaverse, adding major cryptocurrencies to its balance sheet, and investing in digital art from the World of Women (WoW) NFT collection.

Read more: Chainalysis: Central, Northern, and Western Europe reported to be second largest crypto economy this year

Despite #cryptoindustry being hit hard with layoffs in January, the past month has shown a significant slowdown in job cuts. According to reports, only 570 employees were let go in February, compared to over 2,900 in the previous month. Although a dozen companies were affected, the layoffs were mostly in the double digits, unlike the triple-digit layoffs seen in January at major exchanges such as Coinbase, Crypto.com, and Huobi.

The recent cuts were from #blockchain analytics firms and digital asset platforms, with Elliptic and Messari being the latest to cut 10% and 15% of their staff, respectively. However, the founder of Messari reassured the public that the cuts were due to restructuring and market challenges. Despite the job losses, the crypto industry remains dynamic and continues to attract new talent and investment.

Blockchain analytics companies Elliptic and #Chainalysis have recently announced layoffs as part of a strategic move to reduce operating expenses. Elliptic has laid off 20 employees, while Chainalysis has let go of 44 employees, primarily in sales. These moves come amid concerns about an extended recession, which has impacted the tech industry as a whole. 

Despite this, the blockchain industry continues to evolve and innovate, offering exciting opportunities for those looking to make a difference in the world of Web3. The tech industry has seen a decrease in layoffs in February, with a total of 24,572 employees laid off across 129 companies, according to layoff tracker Layoffs.fyi. 

While Web3 companies have been hit harder, due in part to concerns of tougher regulations and the correlation between Bitcoin and the stock market, the crypto industry remains resilient. 

However, some companies have had to make tough decisions in order to remain competitive, with a nonfungible token (NFT) company Dapper Labs and Ethereum-scaling platform Polygon Labs both undergoing internal restructuring and laying off around 20% of their staff. Despite these challenges, the Web3 space continues to offer exciting opportunities for those passionate about innovation and disruption.

February proved to be a challenging month for the cryptocurrency industry, with several major firms announcing staff cuts. Polygon, Dapper Labs, Immutable, Bittrex, Magic Eden, Fireblocks, Protocol Labs, and The Block all revealed reductions in their workforce, with Polygon cutting 100 jobs alone. 

Payments company Affirm also made headlines with the announcement that it would be winding down its crypto program, leading to a 19% staff cut. While the news may be concerning to some, experts like Kevin Gibson, founder of blockchain recruitment firm Proof of Search, believe that these companies are taking decisive action to streamline their operations and improve their overall competitiveness. 

Although the industry has experienced some turbulence, there are also signs that the pace of layoffs has slowed compared to the previous month. As the industry continues to evolve, it remains to be seen how these developments will impact the overall growth and success of the cryptocurrency ecosystem.

According to Jan, who closely follows the movements of boards and venture capital firms, many companies are bracing themselves for the worst in light of the 2022 results. However, the good news is that there have been fewer layoffs this month.

“Despite the challenging circumstances, companies are still committed to building outstanding products. However, with current teams already stretched thin, further layoffs could risk cutting into their muscle and hinder their ability to operate effectively.”

While the outlook may seem promising, Gibson, a leading industry expert, warns that the United States securities regulator could still cause more harm. Additionally, continued media coverage of the Sam Bankman-Fried and the FTX collapse is having a ripple effect on the public perception of the industry and may hinder mainstream adoption.

#crypto2023 #coingabbar

Crypto 1’s $500M C1 Fund Explores Australian Market, Looking To Acquire Shares in Crypto Companies like Animoca Brands and Chainalysis

Crypto 1, a Silicon Valley and United Arab Emirates-based firm, is actively seeking opportunities in the Australian market through its C1 Fund. The $500 million fund is targeting prominent crypto companies, including blockchain gaming business Animoca Brands and data analysis firm Chainalysis.

According to The Australian Financial Review, the C1 Fund aims to acquire secondary shares at substantial discounts. The fund has been engaging with local venture firms, offering to purchase private holdings at discounts ranging from 50% to 80% off their last valuations. The targeted companies are those with a minimum last-round valuation of $300 million, particularly those in the Series C funding stage or later, with investment amounts ranging from $20 million to $50 million. The pitch deck highlights the attractive valuations available in the secondary market due to current market conditions, hyperinflation, and rising interest rates.

Among the fund's targets, Hong Kong-based Animoca Brands, previously listed on the Australian Securities Exchange, has garnered attention. Animoca Brands, now valued at $5.9 billion, was delisted from the exchange in 2020 due to governance breaches, involvement in crypto-related activities, and extensive use of Simple Agreements for Future Equity (SAFEs) issued by its subsidiaries. The C1 Fund aims to purchase Animoca Brands' shares at approximately $0.73 each, representing a significant 75% reduction from its last capital raise price of around $2.95.

In addition to Animoca Brands, the C1 Fund has reportedly set its sights on Chainalysis, a specialized firm offering blockchain analysis and investigation services. Chainalysis, valued at $8.6 billion in 2022, allegedly has around $30 million worth of shares available on the secondary market at a discounted price of $15, a 65% reduction.

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