Chainalysis, a blockchain sleuth company valued at $8.6 billion last year, has announced a layoff of approximately 150 of its 900 staff members. This follows a smaller layoff of 4.8% of staff back in February. CEO Michael Gronager has stated that the layoffs are a necessary part of the firm’s pivot towards clients in the public sector.Chainalysis has traditionally had a large part of its business come from government agencies attempting to track down criminals who used cryptocurrencies to hide illicit profits, as well as a significant share of its revenue coming from firms in the private sector who used its Reactor software to ensure compliance standards. However, with a second year of contractions in crypto markets, the firm has decided to downsize its private sector offerings and focus on its contracts with government agencies.Despite the layoffs, Chainalysis will continue to develop new software solutions. VP of Communications Madeleine Kennedy has stated that the firm’s decision should be seen as a mere shift in priorities and not a slump in activity. The firm’s financial situation is still stable, with “ample cash reserves”, and the layoffs are more to ensure future stability than a last-ditch attempt at keeping afloat. Government contracts already made up 70% of Chainalysis’ revenue, and the firm has been a useful tool for law enforcement since its inception.

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Information	Details
Geography	North America
Countries
Sentiment	neutral
Relevance Score	8
People	Michael Gronager, Madeleine Kennedy
Companies	Anti-Money Laundering Regulations, Prudential Soundness, Consumer Protection, Chainalysis, Reactor, Government Agencies, Market Conduct
Currencies	None
Securities	None