Chainalysis launches alerts for suspicious transactions

Chainalysis announced on 22 August the launch of suspicious cryptocurrency transaction alerts in Chainalysis Know Your Transaction (KYT).

John Dempsey, VP Product, Chainalysis cited – 

“As lawmakers and regulators focus their attention on the industry, it is more critical than ever that cryptocurrency businesses demonstrate compliance best practices. Every minute counts when managing exposure to sanctioned entities, hacked funds, darknet markets, and other illicit activities, which is why Chainalysis is investing in fast, actionable alerts to help our customers mitigate risk across cryptocurrencies.”

Chainalysis Team conveyed that the KYT alerts were designed to help cryptocurrency businesses and financial institutions. The blockchain major noted that benefits include mitigating exposure to regulatory and reputational risks. Chainalysis Team expressed helping compliance teams focus on the most urgent activity and enforce compliance policies. Chainalysis Team summarized by noting the first compliance alerts solution available across 15 cryptocurrencies.

Chainalysis Team maintained that its KYT had always provided real-time transaction monitoring for large volumes of cryptocurrency. The team further added that there was provision to identify high-risk behavior with alerts generated whenever a transfer involves a risky counterparty or crosses a threshold. There are various categories of alert levels based on factors such as category, service, direct versus indirect exposure, the direction of funds, and amount.


Chainalysis Team conveyed in a nutshell that with alerts functionality built directly into the user interface and API, cryptocurrency businesses can keep track of risk transfers. They could also investigate or take action. The team noted that customers could customize risk parameters based on their own business policies to help allocate resources accordingly.

Chainalysis announced in their blog that it had collected an estimated 30 million U.S. dollars to open a research lab in London, making its presence in the United Kingdom. The latest endeavor by Chainalysis labeled Series B has come a long way from their Series A, which was declared in April last year. The company highlighted that they support 85% of the top twenty coins by trading volume.

Michael Breu, Gemini’s Chief Compliance Officer finally expressed sentiments stating that as a New York Trust company they were required to monitor transactions. Such requirements are for on and off their platform. He noted that tools like KYT alerts, which provide real-time and ongoing blockchain analysis, coupled with Gemini’s own compliance policies offer much to gain.