Blockchain Serving the Law: Police and Chainalysis Join Forces
The Calgary Police and Chainalysis have come together to launch the Western Canada Cryptocurrency Investigation Center in mid-April. The facility's primary objective is to tackle crimes involving blockchain and cryptocurrencies.
Chainalysis, a global blockchain data platform, serves government institutions, exchanges, and insurance companies, providing crucial information and services. Its main function is to trace illegal transactions in the marketplace, thereby facilitating the seizure and subsequent return of such funds to their rightful owners.
Crypto crimes escalate in Canada
Chainalysis has recorded a surge in cryptocurrency scams in Canada, mirroring the increased interest in digital assets. In the span of the last four years, there has been a more than 200% rise in the number of active users, with losses from assorted scams surpassing $800 for every 1,000 individuals. Among the most infamous are YieldNodes, promoters of passive income, and CashFXGroup, an algorithmic trading platform. These two operations alone have defrauded victims of $31 million.
Top 10 Scams in Canada in 2022. Source: official Chainalysis blog.
As such, it is evident that law enforcement agencies need state-of-the-art solutions to reinforce their offensive against these criminal activities, and Chainalysis is stepping in to provide support.
The role of Chainalysis
Chainalysis will offer the police continuous access to its suite of analytical tools. This collaboration will enhance the tracking of cryptocurrency assets pilfered by fraudsters and bolster public confidence in Canada's cybersecurity measures, especially in the cryptocurrency domain.
In addition, Chainalysis will spearhead the creation of an educational program in the region for law enforcement officers. This program aims to deepen their understanding of blockchain-related crimes. To supplement this initiative, the police will also have 24/7 access to Chainalysis experts experienced in investigating a broad range of criminal cases, from child abuse to cyberattacks orchestrated by North Korean hackers. Chainalysis firmly believes that these combined efforts will expedite the process of identifying fraudsters.
Future implications
The Calgary Police have expressed a positive outlook towards this novel collaboration. Previously, the intricacies and legal limitations associated with such crimes often deterred citizens from reporting them. However, the establishment of the Western Canada Cryptocurrency Investigations Centre presents a promising shift in the dynamics:
The creation and implementation of the Western Canada Cryptocurrency Investigations Centre will strengthen our ability to ensure the public safety of citizens, allow for proactive policing, enhance technical investigative skills and provide expert training resources for law enforcement.
Gurvais Grigg, the Director of Public Sector Technology at Chainalysis, shares this optimistic perspective. He regards this partnership as an opportunity for the platform to spread its accumulated experience among Calgary's police force. Furthermore, he envisions an extension of such cooperative ventures to help shield Canadians from the menace of crypto crimes.
Inside Chainalysis, the team perceives this partnership as merely the inaugural step of a broader initiative. Their sights are set on proliferating their collaboration with law enforcement agencies worldwide, adopting a specialized strategy for each distinct region.
Not only is this a great moment for Western Canada, but it is a first step in our work to enable law enforcement partners across the world to protect their constituents, and in turn, help build trust in blockchain technology- Jonathan Levin, co-founder and Chief Strategy Officer of Chainalysis.
