AlixPartners, a consulting firm assisting the failed crypto exchange FTX in its bankruptcy case, is enhancing its ability to trace digital assets with support from blockchain analysis company Chainalysis.
The two companies announced on Oct. 31 a partnership to strengthen capabilities in tracking digital assets and conducting forensic investigations. AlixPartners staff are receiving advanced training in blockchain tracing techniques through this partnership and will apply their expertise to broaden services for Chainalysis clients.
Decades of Experience in Traditional Finance Now Applied to Crypto
AlixPartners, founded in 1981 and known for major financial cases, stepped into crypto tracing through its involvement in the FTX bankruptcy case, starting in December 2022. The firm was brought in by FTX’s new management to help trace billions in missing crypto assets. David White, AlixPartners’ director of investigations, is leading these efforts, with previous experience in high-profile cases, including Bernie Madoff’s Ponzi scheme recovery.
In addition to FTX, AlixPartners has supported Bitcoin figure Craig Wright in court disputes and provided asset-tracing expertise for blockchain gaming platform Gala Games.
Crypto Fraud Resembles Past Financial Scams
David White noted that fraud in crypto and decentralized finance (DeFi) closely resembles past financial scams, such as the loan scandals of the 1980s and the market manipulation during the dot-com boom. White highlighted that “fraudsters shift their tactics to new markets and technologies,” using the less-regulated crypto space to repeat schemes like pump–and–dumps and Ponzi operations. This collaboration with Chainalysis aims to target these issues with greater precision.
Summary Review: Consulting firm AlixPartners has partnered with Chainalysis to enhance cryptocurrency tracing for cases like FTX’s bankruptcy. With experience tracing assets in traditional finance scandals, AlixPartners has seen similarities between past financial fraud and current crypto scams, which exploit limited oversight in the digital space. This collaboration seeks to tackle these fraud challenges with more effective investigative tools.
Disclaimer: Nothing in this article, or any content from Web30 News, should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves risks, and investors should be aware that capital is at risk and returns are never guaranteed. Please conduct thorough research and consult with a qualified financial advisor before making any investment decision.
