AlixPartners teams up with Chainalysis to expand crypto tracing expertise

AlixPartners and Chainalytics have teamed up to improve cryptocurrency compliance and forensic investigation services by addressing increasing fraud risks.

AlixPartners, a financial advisory firm known for its work on high-profile restructurings, announced a collaboration with blockchain analysis firm Chainalytic to strengthen its compliance and forensics capabilities in cryptocurrency.

As part of the partnership, AlixPartners will join the Chainalysis Service Provider program, expanding its offerings in “cryptocurrency tracking, forensics, compliance assessments and remediation, data analytics, and related expert witness testimony,” Chainalytics stated in a blog announcement on Oct. 31. .

The collaboration fills a critical need in the cryptocurrency industry, where fraud and regulatory challenges are increasing. According to Chainalytics’ 2024 Crypto Crime Report, crypto-based illegal transactions are set to reach $24.2 billion in 2023, underscoring the need for expertise in transaction tracking and risk management. AlixPartners’ advisors, now Chainalytics Certified Researchers, will use the firm’s blockchain monitoring tools to expand crypto monitoring and compliance capabilities for clients.

From Madoff to FTX

Founded in 1981 by Jay Alix, AlixPartners is known for its restructuring work on companies such as General Motors, Enron and Kmart. His recent work in the cryptocurrency space includes helping FTX’s new management track down billions of dollars in lost funds following the stock market’s 2022 crash. The company’s forensic expertise was also highlighted in the Bernie Madoff case, where it identified affected investors in one of the largest Ponzi schemes. plans in history.

David White, head of financial consultancy at AlixPartners, emphasized that the alliance with Chainalytics will strengthen forensic investigation capabilities in the cryptocurrency sector. Shannon Hughes, head of partnerships at Chainalytics, praised the collaboration as part of the firm’s mission to “build confidence in the future of finance” by expanding its scope of research.