Chainalysis, a company specializing in blockchain analytics, has announced the purchase of Excygent, a company that provides government agencies with services related to cybercrime investigations and data processing. The parties did not disclose the financial terms of the transaction.
Thus, according to a press release, Chainalysis collaborated with the Excygent team in several high-profile investigations. Including those related to the now-defunct Silk Road darknet marketplace. Also, a cascade of hacks of verified Twitter accounts in 2020.
Excygent employees will join the Chainalysis investigation team, which analyzes on-chain data for government agencies. In particular, they will help track payments to extortionate software operators.
The Series E financing round
“Tracking the payment flows of ransomware in the blockchain allows law enforcement agencies to identify and eliminate cryptographers. Paradoxical as it may sound, the attacker’s decision to use cryptocurrency when committing crimes can make it easier for investigators to work”. Said Michael Gronager, the CEO and co-founder of Chainalysis, in a conversation with Cointelegraph.
In addition, this is the first acquisition of the company after the Series E financing round. In which its value was estimated at $4.2 billion.
According to the blog post, Benchmark, Accel, Addition, Dragoneer, Durable Capital Partners and 9Yards Capital have increased their stakes in the firm. Altimeter, Blackstone, GIC, Pictet, Sequoia Heritage and SVB Capital also participated in the round.
Recall that earlier in September, the media revealed some of the tools used by Chainalysis to collect information about crypto transactions and users. Slides from the presentation ended up on one of the Darknet websites.
Moreover, according to the leak, Chainalysis owns the Bitcoin block browser WalletExplorer. The domain was registered in 2015, the company does not appear in the registration data and has never advertised the ownership of the service.
The company collects information through the service, identifying information related to suspicious users.