There seems to be trouble in Chainalysis’ paradise.
On June 24, an anonymous employee or former employer of the company conducted an ask me anything (AMA) section on Reddit without authorization.
The AMA was conducted on r/Bitcoin, and it is still not clear whether it was an angry employee who decided to disclose sensitive insider information of the company.
However, it seems steps have been taken to salvage the situation as the comments have been deleted on Reddit. However, the comments remain achieved in Removeddit.com.
For the basics, Chainalysis is a company that focuses on specializing in countering money laundering and fraud in the cryptocurrency space.
Since the company places measures on remaining secretive due to its work in the cryptosphere, it was surprising to see an AMA that was disclosing sensitive information about their blockchain forensics capabilities.
The Reddit post carried the title “I am a current or former employee Chainalysis ( Remaining Anonymous on Purpose) AMA.”
During the question section, someone asked for “proof for the former employee claim.” To which the so-called former employee answers, “what would you like? No doxxing or illegal distribution of company/personnel information.”
Some of the questions on the Reddit post raised brows.
One user, in particular, asked,
“What’s the most hated tool at Chainalysis right now (or when you’ve been working there), from the ones available to regular bitcoin users? Like, Wasabi, Whirlpool, or anything else?”
The so-called former employee answers stating that “Wassabi is enemy number one.” He further noted that he doesn’t see how the government can take down Wassabi as there is no way to de-anonymize it.
With that in mind, the person said,
“if everyone used Wassabi, Chainalysis would go out of business. Obviously, that won’t happen, but you can see the point.”
According to the post author, who goes by the name Chainalysis1, his purpose for conducting the AMA is transparency. He also adds that Chainalysis is unethical as the company has defeated the purpose of anonymity for which the cryptosphere was created.
This exposé puts a question mark on Chainalysis’ credibility.
Last year, Binance had utilized the company in tightening the security in its exchange since the company possesses a cryptocurrency investigation software that aids law enforcement and financial institutions spot fraudulent activities using crypto activities.
Meanwhile, the so-called former employee deleted his/her Reddit account (“chainalysis1”) after dropping the information on Chainalysis.
The user also left a word of advice on how the crypto community can improve privacy.
S/he says, “I would say to avoid mobile wallets, look into Wasabi/Coinjoin and similar efforts, run a VPN/tor at all times, remember that someone is logging everything you check out on the clear net. That someone may be in the industry of selling privacy. Even if it seems like a simple service to see if transactions have posted to the blockchain.”