Originally published on: October 31, 2024
AlixPartners, the renowned consulting firm aiding the defunct FTX exchange in its bankruptcy proceedings, is revolutionizing cryptocurrency tracing through a strategic partnership with Chainalysis.
Unveiled on Oct. 31, the collaboration aims to bolster digital asset tracing and forensic investigations. AlixPartners’ experts have undergone rigorous training in blockchain investigations and will contribute their proficiency to broaden services provided to Chainalysis clients.
Established in 1981, AlixPartners is a prominent financial advisory and global consulting firm recognized for its involvements in high-profile cases like the Bernie Madoff scandal. In recent years, the company has ventured into cryptocurrency forensics, taking an active role in the FTX bankruptcy case that unfolded in December 2022.
Under the new management of FTX following its founder’s imprisonment, AlixPartners was tasked with tracing billions of dollars in missing crypto assets post the exchange’s collapse in November 2022. Spearheading the crypto forensics efforts in the FTX case is David White, AlixPartners’ director of investigations.
In addition to its work with FTX, AlixPartners has provided support to prominent figures in the crypto sphere, including Craig Wright in disputes with Ira Kleiman and Peter McCormack. The firm also offers expert witness services in tracing crypto assets in legal matters involving Fabrizio D’Aloia and assists Gala Games in its dispute with Wright Thurston.
David White, AlixPartners’ investigative director, emphasized the similarities between crypto fraud schemes and historical market manipulations, indicating that fraudsters adapt to new technologies and markets as they emerge. He noted that the rise of decentralized finance (DeFi) has exposed vulnerabilities to traditional schemes like insider trading and market manipulation.
With a keen eye on governance attacks in decentralized organizations and smart contract exploits, AlixPartners is at the forefront of combating DeFi vulnerabilities. As the cryptocurrency landscape continues to evolve, the partnership between AlixPartners and Chainalysis seeks to enhance the industry’s capabilities in tracing digital assets and investigating fraud.
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