US Government Paid Over $500,000 To Blockchain Oversight in 2017

US Government Paid Over $500,000 To Blockchain Oversight in 2017

For the past time, authorities all over the globe have been trying to regulate crypto markets. Among them are the governments of China, South Korea, Russia and so on. But interestingly, according to news.Bitcoin.com, they could have even been engaging in this probing as well as blockchain oversight crews. For example, Chainalysis, the company which traces operations on the blockchain, declared that it has officially gained more than $500,000 from a rank of different countries’ authorities and law enforcement bodies.

Public Money Paid For Tracing Crypto Transactions

It could sound surprising, but governments do spend money on tracking blockchain practices. And they use the money from the taxes paid by ordinary citizens for that. Amusingly, but precisely the same citizens may be engaged in blockchain activities. Established around four years ago, the company Chainalysis, which eyes such performances, and within the past year, it has gathered a significant amount of funds from countries’ authorities – over half a million of American dollars. And it is only one among this type of firms.

Here’s the short list of the US establishments, which used the services of Chainalysis:

  • Federal Bureau of Investigation
  • Department of Homeland Security
  • Drug Enforcement Agency
  • Internal Revenue Service
  • Immigration and Customs Enforcement
  • Others

At the moment, the team is also hired by some European institutions and even by Europol. One may wonder why the governments do it. But the answer is pretty simple: law enforcement bodies and other state agencies want to trace cyber currencies transactions.

Revelations For State Bodies

According to the public records, IRS recruited Chainalysis this year, whereas DEA paid the firm for its performance just in autumn 2017. These two American agencies and FBI on top have sent the money to the company a significant number of times even earlier. Chainalysis assisted them in probing into Mt. Gox insolvency and Silk Road trial.

Concerning the Mt. Gox case, the firm even revealed at the US congressional hearing that it was aware of the whereabouts of the deficient $650,000 of bitcoin. At that time, the firm’s representative claimed to the American member of the Senate that Chainalysis managed to find the lost Mt. Gox bitcoins. Later in summer 2017, the co-founder of the firm stated that Chainalysis was the established interrogator of Mt. Gox bankruptcy.

Good or Evil?

The company has claimed on its website that it endorses blockchain and virtual currencies. However, as it is widely accepted by governments, the perspectives of cyber money might be troubled due to privacy concerns. But, anyway, all technologies, including those which are connected with cryptos, are just a double-edged sword.