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.

AccessTimeIconOct 7, 2021 at 1:00 p.m. UTC
Updated Oct 7, 2021 at 4:26 p.m. UTC
Daniel Alegre
CEO
Yuga Labs
Hear from Yuga Labs new CEO in his first public appearance since assuming the position.
Daniel Alegre
CEO
Yuga Labs
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Hear from Yuga Labs new CEO in his first public appearance since assuming the position.

Eli is a news reporter for CoinDesk. He holds ETH, SOL and AVAX.

Daniel Alegre
CEO
Yuga Labs
Hear from Yuga Labs new CEO in his first public appearance since assuming the position.
Daniel Alegre
CEO
Yuga Labs
Consensus 2023 Logo
Hear from Yuga Labs new CEO in his first public appearance since assuming the position.

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.

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Eli is a news reporter for CoinDesk. He holds ETH, SOL and AVAX.


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Eli is a news reporter for CoinDesk. He holds ETH, SOL and AVAX.