Dapper Labs Taps Chainalysis to Fight NFT Money Laundering
The creator of NBA Top Shot and CryptoKitties is working on a way to detect and prevent NFT money laundering and market manipulation.
Non-fungible token (NFT) developer Dapper Labs has agreed to a long-term partnership with blockchain tracing firm Chainalysis to detect and prevent NFT money-laundering and market manipulation.
Chainalysis said Thursday that Dapper Labs will use Chainalysis’s KYT (Know Your Transaction) and Reactor compliance tools, which flag suspected criminal activity and enable deeper investigations into those transactions, respectively. Dapper expects illicit activity could ramp up as NFTs hit mainstream adoption.
“NFTs are one of the most exciting spaces in cryptocurrency, but they will only be successful in the long term if we can ensure a safe environment for our customers,” Naeem Bawla, associate director of compliance at Dapper Labs, said in a press release. “We’re thrilled to partner with Chainalysis to keep potential bad actors off our platform, combat money laundering, and at the same time, stay on top of the quickly evolving local and global regulatory and compliance space.”
Dapper’s deal with Chainalysis comes on the heels of Dapper announcing a $250 million funding round at a $7.6 billion valuation in September.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.