Blockchain analytics firm Chainalysis is reportedly letting go of 39 of its employees in order to become more profitable.
On Nov. 21, Coindesk reported that Chainalysis is cutting its workforce by nearly 20%, eliminating positions across the board to the tune of 39 employees laid off. According to Maddie Kennedy, Chainalysis’ director of communications, the research and development team had to bear the brunt of it.
Layoffs might come as a surprise
The staff cuts might come as something of a surprise as the New York-based blockchain analytics firm has experienced a number of positive announcements over the years.
In September, the firm announced blockchain trading platform Bittrex’s deployment of its real-time transaction monitoring solution. In 2018, the vast majority of blockchain intelligence government deals were reportedly contracted to Chainalysis, which during that time had signed deals with government agencies totaling $5.3 million.
It is also well-known that the IRS used Chainalysis back in 2015 to assist them in its case against Coinbase, in which a United States federal judge ordered the crypto trading platform to report 14,355 users to the IRS.
However, Kennedy explained that the layoffs will further aid the company on its path to profitability and to pivot its resources into product teams and go-to-market strategies. She added:
“Market conditions necessitated early action [...] The layoffs are a preemptive measure, meant to stave off the unexpected, including the possibility of an economic downturn [...] We think that acting now is best for the long-term health of the business.”
FinCEN chief speaks at Chainalysis conference
In November, the United States Financial Crimes Enforcement Network (FinCEN) Director Kenneth Blanco spoke at a conference hosted by Chainalysis, where he told the audience that Anti-Money Laundering (AML) laws will be strictly enforced in the world of cryptocurrencies. Blanco also said that the so-called travel rule does apply to digital currencies and that the government expects crypto firms to comply.