Chainalysis has acquired cybercrime investigation firm Excygent to combat ransomware attacks

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Blockchain analytics firm Chainalysis has bought cybercrime investigation firm Excygent for an undisclosed amount, hinting that the two will continue to work together to help “dismantle ransomware.”

In the October 5 announcement, Chainalysis CEO Michael Gronager said the company has teamed up with Excygent on projects that include seizing cryptocurrencies tied to the now-defunct darknet market Silk Road, shutting down a major child abuse website, and disrupting campaigns related to terrorist financing. . Groniger said that employees from Excygent will join the company’s investigations and software team to support investigations into cryptocurrencies used in cybercrime.

“Keeping the flow of ransomware payments on the blockchain is essential for law enforcement to understand and deconstruct ransomware operations,” Groniger told Cointelegraph. Paradoxical as it sounds, it can actually be useful to investigators when bad actors choose to use cryptocurrency when committing crimes.

The CEO cited Chainalysis’ contribution to a cybercrime investigation involving NetWalker, a ransomware operator that allegedly targeted hospitals during the pandemic and collected more than $25 million in ransom payments in 2020. Additionally, the company looked at Suex OTC that is taking It is based in Russia, which was recently targeted by the US Treasury for allegedly allowing hackers to access cryptocurrencies sent as payment for ransomware attacks. Chainalysis claimed that “tens of millions” of crypto payments from Suex funds came from addresses linked to various cybercrimes.

“Cryptocurrency is transparent, and with the right tools and the right talent, we can get rid of bad actors and build a more secure financial system,” Groniger said.

Related: US Senator Warren introduces a bill to study the role of encryption in ransomware

Chainalysis has grown significantly in the past year, receiving support from both the US government and the private sector. In June, the company reached a valuation of $4.2 billion after a $100 million funding round led by global investment manager Cotwe.