Andreas Antonopoulus, who is a well known crypto influencer, has brought up the point that blockchain forensics firms like Chainalysis are essentially the antithesis of the crypto space and the cypherpunk movement. Whereas the cypherpunk movement and the backbone of the crypto space works on increasing privacy and offering decentralized services, Chainalysis and other blockchain forensics firms work to compromise privacy.
Antonopoulus specifically says “Companies like Chainalysis and others are basically in an arms race against privacy. And what they’re doing is they’re providing the world’s worst dictators and regimes, either directly or indirectly, with information that violates the civil rights of millions of people.”
The main clients of Chainalysis and other blockchain forensics firms are governments and banks. They seek to expose the identity of crypto users in the name of suppressing criminals or terrorists, but along the way they compromise the identity of everyone possible.
That being said, blockchain forensic firms are inadvertently strengthening the privacy and stealth technology of the crypto space. Crypto devs are rising to the challenge and creating cryptos with more and more privacy features. Monero (XMR) is the best example. It regularly adds privacy features and it is believed to be totally stealth at this point.
In other words, although the blockchain forensics firms are the ‘bad guys’ in the crypto world, since they are trying to compromise everyone’s identity, their existence has sparked an arms race which is causing crypto technology to become more and more anonymous.