AlixPartners and Chainalysis Team Up to Enhance Cryptocurrency Tracing Capabilities

AlixPartners, a consulting firm assisting the defunct exchange FTX in bankruptcy proceedings, is working to improve cryptocurrency tracing through a collaboration with Chainalysis.

Consulting firm AlixPartners, which is assisting the bankrupt cryptocurrency exchange FTX in its bankruptcy proceedings, is now enhancing its capabilities in cryptocurrency tracing through a collaboration with blockchain research firm Chainalysis.

AlixPartners and Chainalysis announced a strategic partnership on Oct. 31 to improve digital asset tracing and forensic investigation capabilities.

As part of the collaboration, AlixPartners professionals will receive extensive crypto training in blockchain investigations and will also contribute their expertise to expand the services offered to Chainalysis customers.

AlixPartners brings decades of experience in TradFi investigations to crypto

Founded in 1981, AlixPartners is a multinational financial advisory and consulting firm that specializes in bankruptcy proceedings. The firm is renowned for its involvement in the Bernie Madoff scandal in 2008, where it recovered the majority of the principal, estimated at $17.5 billion, that was stolen from investors.

AlixPartners has been actively venturing into cryptocurrency forensics in recent years, notably with its involvement in the FTX bankruptcy case in December 2022.

FTX founder Sam Bankman-Fried is currently serving a 25-year prison sentence in the United States. Source: The New York Times

Crypto and DeFi fraud ‘echoes many patterns’ seen in schemes from the ’80s

According to AlixPartners’ investigative director, David White, fraud schemes in crypto largely mirror the market manipulations observed in the 1980s and the dot-com era.

“Fraudsters simply find new venues as markets and technology evolves,” White told Cointelegraph, referring to new technologies like crypto and decentralized finance (DeFi). He explained:

“DeFi’s limited oversight and ample opportunities forсхема quickly triggered a reemergence of tactics like pump-and-dumps, insider trading, market manipulation and Ponzi schemes, but now in a Web3 context.”

David White, managing director and director of investigations at AlixPartners. Source: AlixPartners

With rising DeFi attacks, AlixPartners has been increasingly focused on governance attacks on decentralized organizations, smart contract exploits, collateral schemes and more, according to White, who stated:

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