Customer Story

Bitbuy Safeguards Client’s Funds & Trust Using Chainalysis

  • Recovery of funds: So far this year, we’ve been able to help several clients recover their funds. For these clients, in certain cases we’ve been able to recover 60-70% of their funds, and even up to 100%.
  • Loss prevention: In the month of August 2021 alone, we prevented millions of potential losses by leveraging Chainalysis to identify illicit activity and prevent our clients from sending to those bad actors.
  • Process efficiency: Ultimately, having the ability to map certain types of fraud or bad actors and bring them all together, definitely saves a lot of time.
  • Higher quality of data: Since we have more in-depth information and analysis through Chainalysis, the quality of our data and insights has improved as well.

Having Chainalysis allows Bitbuy to ultimately save our clients from lost funds. Bitbuy offers these value-add services to our clients at no cost as an invaluable benefit in working with us.”

Joseph Iuso, Chief Anti-Money Laundering Officer, Bitbuy

Bitbuy Technologies Inc is one of Canada’s largest cryptocurrency marketplaces, with over 350,000 registered Canadian users seeking to safely transact in digital asset trading. Bitbuy has traded over $4 billion of assets for its clients.

The Challenge

Bitbuy first launched their platform without a blockchain analytics solution provider. As their volume grew with time, they soon recognized the need for a forensic tool to gather the proper intelligence in a proactive manner. A technology solution was needed to close the business gap.

The Solution

Bitbuy selected Chainalysis after a thorough evaluation of the various options on the market. After completing its diligence, Bitbuy chose Chainalysis due to their accurate intelligence, valuable insights, and effective training and user experience. Bitbuy has achieved their business goals by using Chainalysis Know Your Transaction (KYT) and Chainalysis Reactor.

 

Our executives love the data that comes out of Chainalysis, and they appreciate that the tool mitigates a lot of the high-risk activity that’s inherent in our industry.”

Why were you seeking a solution provider?

Before we integrated Chainalysis into our platform, we did not have a tool to consolidate all the information out there from the open source and some closed source intelligence. We couldn’t even comprehend how to handle all the different scenarios. Frankly, we were in the dark in tracing digital asset movements once they were transferred out of our ecosystem. When we first set out on our own in 2016, we did not have the volumes to justify having a blockchain analytic tool. Then in 2018, as our volume grew, we started the process to identify a solution provider. Rather than relying on a passive post-mortem process, we wanted to be more proactive. We needed to protect our bank accounts and make sure we weren’t dealing with bad actors. So ultimately, we recognized it was challenging to continue gathering the proper intelligence in a reactive fashion.

Why did you select Chainalysis?

We conducted a thorough evaluation of vendors, including Chainalysis and many other leading providers. During our review, we ran multiple tests that guided us on which solution provider we would ultimately select. We did a criteria analysis, looking at the ability to probe on addresses, the ability to understand the clusters related to those addresses, and the ability to understand the other endpoints.