Chainalysis Investigations Lead Is 'Unaware' of Scientific Evidence the Surveillance Software Works

Chainalysis' head of investigations doesn't seem to have a great understanding of whether her company's flagship software even works. From a report: Elizabeth Bisbee, head of investigations at Chainalysis Government Solutions, testified she was "unaware" of scientific evidence for the accuracy of Chainalysis' Reactor software used by law enforcement, an unreleased transcript of a June 23 hearing shared with CoinDesk shows. The fact that Chainalysis' blockchain demystification tools have become so widespread is a serious threat to the crypto ecosystem. Although industry insiders have raged against Chainalysis since it was founded, often accusing it of violating people's financial privacy, there may be a better argument to make against the company and analysis firms like it: it's within the realm of possibility that these "probabilistic" machines don't work as well as advertised. This is a big deal considering Chainalysis' surveillance tools are used widely across the industry for compliance, and have at times led to unjustified account restrictions and -- even worse -- land unsuspecting individuals on the radar of law enforcement agencies without probable cause.

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