New York-based blockchain analytics firm Chainalysis is set to provide crypto exchange Bitfinex with its Anti-Coin Laundering compliance solution.

In a press release published on Dec. 12, both firms took pains to stress that the solution will be privacy-prophylactic, simply help Bitfinex to crack down on bad actors using its platform.

Enhanced monitoring

Chainalysis is ane of the highest-profile firms in the blockchain intelligence industry, providing solutions — such as its proprietary KYT (Know Your Transaction) tool — that enable firms, governments and police force enforcement agencies to monitor blockchain transactions and runway suspected illicit activities.

Earlier this year, the house expanded its monitoring capacities beyond Bitcoin (BTC) to encompass 41 further cryptocurrencies including Ether (ETH), Bitcoin Greenbacks (BCH), Litecoin (LTC), ERC-20 tokens such every bit Maker (MKR) and Dai (DAI), and various stablecoins, including Bitfinex'due south affiliated token Tether (USDT).

Bitfinex will ostensibly be able to use the existent-fourth dimension monitoring capabilities of Chainalysis' technology to place high-gamble outliers among a loftier volume of transactions. Automated and granular due diligence tools can help the exchange to better classify resources, enforce compliance policies and robustly counter financial offense, the press release claims.

Troubled history

Bitfinex'due south movement to tighten upward its compliance and due diligence in partnership with a veteran intelligence house like Chainalysis comes later months of protracted legal difficulties.

Amidst these, Bitfinex, Tether and parent house iFinex have been defendant by the New York Chaser General's office to accept lost $850 million of commingled client and corporate funds then to have attempted to cover-up the purported shortfall.

In October, the U.S. Attorney's Function for the Southern Commune of New York indicted the principal of controversial Panama-based shadow payment processor Crypto Uppercase on iii criminal counts. Crypto Capital had, in the exchange's ain words, "candy certain funds for and on behalf of Bitfinex for several years." Bitfinex has argued that it is itself a victim of the fraud.

Concluding month, Bitfinex dismissed a split, fresh lawsuit as "mercenary and baseless". It has redoubled its denial of persistent controversies, including claims that Tether's issuance was used to dispense the cryptocurrency markets and long-continuing allegations that the token is non backed 1:i past the U.South. dollar.