An innovative blockchain forensics platform is in the offing with the collaboration of Nigma Conseil, a French cybersecurity firm, and the Austrian Institute of Technology (AIT).
Both firms sealed a deal to develop e-Nigma, a proposed financial compliance platform. The tool will be developed using GraphSense, an open-source cryptocurrency forensics platform developed by AIT, a government-owned research institution based in Vienna, Austria.
e-Nigma to combat crypto, virtual crimes
E-Nigma has the capacity to provide the users to conduct due diligence evaluations that will be very helpful in several digital regulations such as Know Your Customer (KYC) and Anti-Money Laundering (AML). Compared to similar tools, it has the function to monitor and put in order all blockchain activities.
The technology will be employing an AIT-led program known as Titanium. This will validate transactions that occur in underground industries.
The platform can also perform sophisticated functions like wallet clustering and risk scoring to identify the blockchain wallet addresses of individuals with real-life identities by searching both the clear and dark web.
EU gov in support of blockchain forensics platform
The European Union approved this program by awarding about €5 million [$AU8.4 million] as funding to mitigate potential and existing cryptocurrency cyberattacks and crimes.
Regarding the collaboration, Fabien Tabarly, CEO of Nigma Conseil, noted:
“The synergy between a leading European academic research institute and our team of developers has been instrumental in implementing the most innovative tools to fight financial crime in virtual currencies.”
Other blockchain forensics tools
E-Nigma will be competing with similar blockchain forensics solutions like those provided by Chainalysis, CipherTrace, and Elliptic.
As money-laundering regulations worldwide are expected to be more stringent, many firms in the cryptocurrency industry and financial sectors are setting high hopes for the adoption of innovative blockchain forensics tools.
Chainalysis, a blockchain analysis firm, recently launched its tie-up with both Bitfinex and Tether, assisting the service provider in its compliance. In December 2019, the said released the global roll-out of its anti-money laundering compliance solution with Bitfinex.
The full-featured trading tool is designed for the main digital assets and cryptocurrencies to identify and prevent money laundering and illegal transactions in various cryptocurrencies. This came during the establishment of proper compliance systems when it is needed, where jurisdictions worldwide are analyzing carefully the cryptocurrency market.
Meanwhile, Elliptic is focused on banks that use a compliance platform that details the potential risks brought by cryptocurrency exchange transactions.