Public Key

Latest Episodes:

Everything You Need To Know About Smart Contract Audits Mar 13, 2023

Show notes

Everything You Need To Know About Smart Contract Audits

Chainalysis recently reported that 2022 was the biggest year ever for crypto hacking with $3.8 billion stolen with the majority of the funds coming from DeFi protocols and it begs the question, why isn’t there better cyber security for these projects?

This is the exact reason we brought in our next guest, David Schwed (Chief Operating Officer of Halborn), who sat down with Ian Andrews (Chief Marketing Officer, Chainalysis) and explained everything we need to know about smart contract audits and why projects shouldn’t solely be relying on these audits as part of their cyber security functions.

David gives us expert insights into proper key management and explains the vulnerability of bridge hacks and the need for decentralized projects to prioritize cyber security instead of making it a secondary thought, especially with escalating crypto hacks.

Minute-by-minute episode breakdown

(2:05) – What is Halborn and why should security be built into projects foundationally from the beginning?
(5:35) – The Origin Story of David Schwed: From Technologist to Law to CISO
(8:45) – The importance of smart contract audits and prioritizing security
(17:25) – What role does key management play for projects that are protecting digital assets
(24:45) – Creating simulated environments to test smart contract code
(29:25)) – Are the vulnerabilities of bridge hacks and cross chain exploits solvable?
(33:55) – Web2 Infrastructure vulnerabilities in DeFi and what projects are doing it right?
(37:25) – What are TWAP oracles and what are the vulnerabilities with projects using them

Related resources

Check out more resources provided by Chainalysis that perfectly complement this episode of the Public Key.

Report: The Chainalysis 2023 Crypto Crime Report
Conference: Chainalysis Links Conference 2023 in New York City
Website: Halborn: Elite Blockchain Security Solutions
Blog: What Are TWAP Oracles?
Video: How Hackers Exploit DeFi Protocol and Make Money
Chainalysis Blog: 2022 Biggest Year Ever For Crypto Hacking with $3.8 Billion Stolen, Primarily from DeFi Protocols and by North Korea-linked Attackers
Twitter: Chainalysis Twitter: Building trust in blockchains
TikTok: Newly launched Chainalysis Tik Tok page
YouTube: Chainalysis YouTube page is completely revamped
Website: Chainalysis: We are paving the way for a global economy built on blockchains.

Speakers on today’s episode

Ian Andrews * Host * (Chief Marketing Officer, Chainalysis)
David Schwed (Chief Operating Officer, Halborn)

This website may contain links to third-party sites that are not under the control of Chainalysis, Inc. or its affiliates (collectively “Chainalysis”). Access to such information does not imply association with, endorsement of, approval of, or recommendation by Chainalysis of the site or its operators, and Chainalysis is not responsible for the products, services, or other content hosted therein.

Our podcasts are for informational purposes only, and are not intended to provide legal, tax, financial, or investment advice. Listeners should consult their own advisors before making these types of decisions. Chainalysis has no responsibility or liability for any decision made or any other acts or omissions in connection with your use of this material.

Chainalysis does not guarantee or warrant the accuracy, completeness, timeliness, suitability or validity of the information in any particular podcast and will not be responsible for any claim attributable to errors, omissions, or other inaccuracies of any part of such material.

Unless stated otherwise, reference to any specific product or entity does not constitute an endorsement or recommendation by Chainalysis. The views expressed by guests are their own and their appearance on the program does not imply an endorsement of them or any entity they represent. Views and opinions expressed by Chainalysis employees are those of the employees and do not necessarily reflect the views of the company.

Is Decentralized Cloud Infrastructure the Killer dApp for Web3? Mar 06, 2023

Show notes

Is Decentralized Cloud Infrastructure the Killer dApp for Web3?

The transition from web2 to web3 seems like a monumental shift for many organizations and although Amazon seemed to replace Radio Shack very quickly, many companies are still struggling to build the infrastructure needed to enter the world of decentralization.

Well that is where our next guest comes in Daniel Keller, who is the co-founder of Flux, a decentralized cloud infrastructure, sat down with Ian Andrews (Chief Marketing Officer, Chainalysis) and explained how Flux may be the Amazon AWS of the blockchain.

Daniel explains the difference between centralized and decentralized cloud infrastructure and how companies are using his technology for a wide range of tasks, from setting up a word press site to facilitating crypto and NFT transactions. Daniel emphasizes the need to keep cloud infrastructure affordable and explains why Flux moved away from their privacy centric origins.

Minute-by-minute episode breakdown

(2:35) – What is Flux and why is this decentralized cloud infrastructure being called the “aws on the blockchain”
(5:25) – Decentralized vs. Centralized cloud service providers
(13:35) – What can be run on Flux’s decentralized cloud infrastructure?
(17:00) – The age old question. Why create a Layer 1 (L1) blockchain?
(21:45) – Daniel’s origin story of building one of the biggest GPU mining operations in USA
(26:15) – How to maintain decentralization on Flux when creating cloud infrastructure
(31:55) – Tokenomics 101 and why Flux created it's own wallet

Related resources

Check out more resources provided by Chainalysis that perfectly complement this episode of the Public Key.

Report: The Chainalysis 2023 Crypto Crime Report
Conference: Chainalysis Links Conference 2023 in New York City
Flux Dashboard: Overview of Flux Network Dashboard and Token Supply
Website: Decentralized Web 3.0 The Next Generation Computational Network
Press Release: Flux Launches New Decentralized Persistent Storage Development Upgrade
Article: Proof of Useful Work: The Future of AI (Artificial Intelligence)!
Twitter: Chainalysis Twitter: Building trust in blockchains
TikTok: Newly launched Chainalysis Tik Tok page
YouTube: Chainalysis YouTube page is completely revamped
Website: Chainalysis: We are paving the way for a global economy built on blockchains.

Speakers on today’s episode

Ian Andrews * Host * (Chief Marketing Officer, Chainalysis)
Daniel Keller (Co-founder, Flux)

This website may contain links to third-paErin West rty sites that are not under the control of Chainalysis, Inc. or its affiliates (collectively “Chainalysis”). Access to such information does not imply association with, endorsement of, approval of, or recommendation by Chainalysis of the site or its operators, and Chainalysis is not responsible for the products, services, or other content hosted therein.

How Law Enforcement is Combating Pig Butchering Crypto Scams Feb 27, 2023

Show notes

How Law Enforcement is Combating Pig Butchering Crypto Scams

A multi-billion dollar scam operation that incorporates industrial scale scam centers, human trafficking, fake investment websites and cryptocurrency. Pig butchering is emerging as a serious priority for law enforcement who are seeing victims lose their life savings to scammers that may be victims themselves.

In this episode, Ian Andrews (Chief Marketing Officer, Chainalysis) is joined by cybercrime savvy public sector heroes , Erin West (Deputy District Attorney, Santa Clara County, Office of the District Attorney) and Alona Katz (Deputy Bureau Chief of the Cybercrime and Identity Theft Bureau, Manhattan District Attorney's Office), who give the victim perspective of these complex crypto related crimes.

Alona and Erin explain how victims are being taken advantage of and how public private partnerships and law enforcement coalitions are collaborating to combat this billion dollar industry. They share heartbreaking stories from victims, but also give practical tips on how law enforcement and the general public can do their part in the fight against these investment scams.

Minute-by-minute episode breakdown

(2:45) – How Erin and Alona got into the public sector and their first experience with cryptocurrency on the job
(5:35) – How are the victims of Pig Butchering lured in by scammers and are victims underreporting this crime?
(18:00) – The REACT Task Force and how law enforcement is collaborating to counter Pig Butchering schemes
(22:03) – Crypto is more recoverable than some law enforcement might think but victims have to be cautious of third party recovery services
(30:15) – How to navigate international jurisdictions where legislation and governments may not be as cooperative
(33:56) – The best advice for protecting yourself against Pig Butchering crypto scammers

Related resources

Check out more resources provided by Chainalysis that perfectly complement this episode of the Public Key.

Report: The Chainalysis 2023 Crypto Crime Report
Conference: Chainalysis Links Conference 2023 in New York City
Forbes Article: Cryptocurrency Scam Victim Who Lost Over $1 Million To Get Over $100,000 Back, Prosecutor Says
Cybercrime Hotline: Manhattan DA Office - Cybercrime and Identity Theft Hotline - 212-335-9600
Unchained Podcast (Laura Shin): How This Prosecutor Is Spearheading the Fight Against Crypto ‘Pig Butchering’ Scams – Ep. 455
Twitter: Chainalysis Twitter: Building trust in blockchains
TikTok: Newly launched Chainalysis Tik Tok page
YouTube: Chainalysis YouTube page is completely revamped
Website: Careers at Chainalysis - Join us today

Speakers on today’s episode

Ian Andrews * Host * (Chief Marketing Officer, Chainalysis)
Erin West (Deputy District Attorney, Santa Clara County, Office of the District Attorney)
Alona Katz (Deputy Bureau Chief of the Cybercrime and Identity Theft Bureau, Manhattan District Attorney's Office)

Everything You Need To Know About Pump And Dump Schemes Feb 20, 2023

Show notes

Everything You Need To Know About Pump And Dump Schemes

Imagine millions of people on a dark web chat group waiting in anticipation to pump a token 500% on a targeted exchange, while unsuspecting investors, traders and regulators have no insights as to what is about to take place.

In this episode, Ian Andrews (Chief Marketing Officer, Chainalysis) is joined by former Flashpoint founder, Evan Kohlmann, who is now the Founder and CEO of Cloudburst Technologies, a company tasked with scraping the dark web to identify potential pump and dump schemes and the associated illicit actors.

Evan explains the nuances of these targeted attacks, who are the orchestrators and the countries being targeted. He explains how his technology is able to gather KYC information and shed some light on the extent these schemes have on the total illicit activity in the industry.

Minute-by-minute episode breakdown

(2:27) – Understanding market manipulation in the crypto world and what Cloudburst Technologies is doing about it
(4:35) – How to identify the illicit actors on dark web forums attempting to manipulate the markets
(12:30) – How Evan got the name “The Terrorist Search Engine” and how he helped build up leading dark web intelligence firm, Flashpoint
(15:21) – How millions of people in dark web forums and Telegram are organizing themselves to pump certain tokens 50% up to 500%
(20:49) – Applying Cloudburst technology to traditional commodity markets and large market cap tokens
(28:00) – Are illicit actors targeting decentralized exchanges and protocols or just centralized exchanges
(30:05) - How Cloudburst is able to identify KYC on illicit actors across the dark web using OSINT

Related resources

Check out more resources provided by Chainalysis that perfectly complement this episode of the Public Key.

Report: The Chainalysis 2023 Crypto Crime Report
Blog: 24% of New Tokens Launched in 2022 Bear On-Chain Characteristics of Pump and Dump Schemes
Conference: Chainalysis Links Conference 2023 in New York City
LinkedIn Post: Cloudburst tracks almost 700,000 online actors involved in cryptocurrency price manipulation fraud and pumping and dumping
Twitter: Chainalysis Twitter: Building trust in blockchains
TikTok: Newly launched Chainalysis Tik Tok page
YouTube: Chainalysis YouTube page is completely revamped
Website: Careers at Chainalysis - Join us today

Speakers on today’s episode

Ian Andrews * Host * (Chief Marketing Officer, Chainalysis)
Evan Kohlmann (Founder and CEO, Cloudburst Technologies)

Our podcasts are for informational purposes only, and are not intended to provide legal, tax, financial, or investment advice. Listeners should consult their own advisors before making these types of decisions. Chainalysis has no responsibility or liability for any decision made or any other acts or omissions in connection with your use of this material.

DeFi Success in the Wake of Centralized Crypto Exchange Struggles Feb 13, 2023

Show notes

DeFi Success in the Wake of Centralized Crypto Exchange Struggles

In 2022 we saw the failures of several centralized crypto exchanges and service providers, which has led to many consumers choosing to move towards self-custody wallet options and using decentralized protocols.

In this episode, Ian Andrews (Chief Marketing Officer, Chainalysis) is joined by former colleague, Salman Banaei (Head of Policy at Uniswap Labs) to discuss the sudden migration from centralized exchanges to DeFi protocols and how policy makers are approaching regulating decentralized ecosystems.

Salman takes us back to the origins of Decentralized Finance (DeFi) and the practical use cases around the world for these protocols to benefit consumers. He explains how the transparency of these decentralized protocols could be a huge advantage for those that are unbanked and underbanked.

Minute-by-minute episode breakdown

(2:30) – What’s new in Decentralized Finance (DeFi) around the world
(4:35) – The origins of Bitcoin and Ethereum that led to DeFi and what role Uniswap plays in the decentralized ecosystem
(11:25) – The shift from centralized crypto exchanges to decentralized finance products and self custody options
(19:21) – What is the international regulator’s perception of DeFi and additional transparency not so prevalent in traditional markets
(25:21) – Can DeFi solve the problem of predatory fees of traditional financial institutions
(29:15) – Responding to anti-crypto sentiment that has increased since major failures in 2022
(32:25) – New Uniswap features and outlook for 2023

Related resources

Check out more resources provided by Chainalysis that perfectly complement this episode of the Public Key.

Report: The Chainalysis 2023 Crypto Crime Report (Coming February 2023)
Blog: How DeFi Can Cut Costs & Boost Transparency in Foreign Exchange Markets
Conference: Chainalysis Links Conference 2023 in New York City
LinkedIn Post: UK & US Governments Sanctioned Members of Russia-based Cybercrime Gang Trickbot
Twitter: Chainalysis Twitter: Building trust in blockchains
TikTok: Newly launched Chainalysis Tik Tok page
YouTube: Chainalysis YouTube page is completely revamped
Website: Careers at Chainalysis - Join us today

Speakers on today’s episode

Ian Andrews * Host * (Chief Marketing Officer, Chainalysis)
Salman Banaei (Head of Policy, Uniswap Labs)

The Chainalysis 2023 Crypto Crime Report Preview (Part 2 of 2) Feb 06, 2023

Show notes

The Chainalysis 2023 Crypto Crime Report Preview (Part 2 of 2)

Sanctions was a huge focus for regulatory bodies in 2022 and we saw an increase of designations of Russian based cryptocurrency exchanges and organizations propagating the war efforts against Ukraine.

In this episode, Ian Andrews (Chief Marketing Officer, Chainalysis) is joined by occasional co-host and Director of Research at Chainalysis, Kim Grauer, for the second part of a great conversation.

Kim provides insights into the sanction designations and also highlights that the crypto crime report will answer whether cryptocurrency sanctions are effective. She discusses cryptocurrency recovery efforts by law enforcement and explains how much we should be weighing proof of reserves as a sign of crypto exchange solvency.

Minute-by-minute episode breakdown

(2:15) – Is web3 and cryptocurrency dead?
(7:10) – What to expect in 2023 regarding cryptocurrency seizures and law enforcement recovery activity
(11:45) – The outlook on cryptocurrency sanctions after significant enforcement actions in 2022
(1742) – Should proof of reserves be the proper method to audit crypto exchanges financial solvency
(21:45) – Cybersecurity and the other big themes for 2023
(25:25) – The collapse of crypto juggernauts and the contagion felt by the entire industry

Related resources

Check out more resources provided by Chainalysis that perfectly complement this episode of the Public Key.

Report: The Chainalysis 2023 Crypto Crime Report (Coming February 2023)
Newsletter: 2023 Crypto Crime Report: Sanctions Preview, Key Crypto Moments From 2022, and more
Conference: Chainalysis Links Conference 2023 in New York City
Blog: Crypto Money Laundering: Four Exchange Deposit Addresses Received Over $1 Billion in Illicit Funds in 2022
Press Release: Treasury Targets Global Sanctions Evasion Network Supporting Russia’s Military-Industrial Complex
Twitter: Chainalysis Twitter: Building trust in blockchains
TikTok: Newly launched Chainalysis Tik Tok page
Youtube: Chainalysis Youtube page is completely revamped
Website: Careers at Chainalysis - Join us today

Speakers on today’s episode

Ian Andrews * Host * (Chief Marketing Officer, Chainalysis)
Kim Grauer (Director of Research, Chainalysis)

Tax Season: What Crypto Investors and Tax Agencies Need to Know Jan 31, 2023

Show notes

Tax Season: What Crypto Investors and Tax Agencies Need to Know

This podcast is for informational purposes only, and are not intended to provide legal, tax, financial, or investment advice. Listeners should consult their own advisors before making these types of decisions.

If you want to make an active crypto trader nervous there are few things that work better than reminding them there are only 2 and half months left until the US Tax filing deadline. For most people a tax return is full of arcane and complex rules that you’re not quite sure if you got everything right, but for crypto investors the rules are being written and rewritten each year.

In this episode, Ian Andrews (Chief Marketing Officer, Chainalysis) had to bring Chainalysis’ in-house expert, Roger Brown (Global Head of Tax Strategy) to understand the tax principles that apply to crypto and how recreational users and institutional investors are managing bitcoin on their balance sheets.

Roger informs us on the latest tax changes in the US and abroad and speculates on how many people are correctly reporting big crypto gains or losses.

Minute-by-minute episode breakdown

(2:35) – How the ambiguity of the classification of Bitcoin, challenged traditional tax principles
(4:30) –Understanding tax law and foreign currency and where cryptocurrency fits in
(9:15) – How countries around the world are taxing Bitcoin and cryptocurrency
(13:07) – Are stablecoins treated as currency based on the assets backing them?
(14:45) – Taxes may not being paid on massive crypto gains and how the IRS is reacting
(18:35) – Do crypto exchanges have reporting requirements for tax purposes to their customers
(23:16) - Tax strategies going from bull to bear markets and the impact on staking crypto
(27:04) - What happens when your assets are locked in Celsius, FTX or the victim of a rug pull
(30:00) - The complexities of institutions and companies holding crypto
(33:37) - The future of crypto taxation and what part regulators will play

Related resources

Check out more resources provided by Chainalysis that perfectly complement this episode of the Public Key.

Speakers on today’s episode

Ian Andrews * Host * (Chief Marketing Officer, Chainalysis)
Roger Brown (Global Head of Tax Strategy, Chainalysis))

Scaling Ethereum Could be the Answer for CBDCs and Web3 Ecosystem Jan 24, 2023

Show notes

Scaling Ethereum Could be the Answer for CBDCs and Web3 Ecosystem

When you are a content aggregator and you want to enable crypto payments for creators located all around the world, what do you do? Build a brand new layer-2 blockchain of course! Well probably not most of us, but that’s exactly what the team at Nahmii has undertaken.

In this episode, Ian Andrews (Chief Marketing Officer, Chainalysis) is joined by Jacobo Toll-Messia (CEO, Nahmii) to understand what makes Nahmii so useful and what’s new in the just released 3.0 version of the technology.

Interestingly some of the first customers for the Nahmii platform are central banks looking to launch CBDCs. The platform is particularly well suited to governments and financial institutions who want to implement permissioned blockchain technology.

Minute-by-minute episode breakdown
(2:20) – The origins of Nahmii, a content aggregate company built before the Bitcoin blockchain
(9:25) – The thought process on building a revolutionary layer-2 solution on Ethereum
(15:18) – The finality of transactions was a main driver behind the design of the Nahmii protocol
(17:00) – The evolution from Nahmii 1.0 to Nahmii 2.0 led to Nahmii 3.0 in Testnet phase
(20:55) – Integrating web3 solutions with financial institutions that require KYC and AML
(25 :40) – The launch of SkunkDAO and onboarding web2 companies into web3
(29:01) - A better understanding of CBDCs and why countries are looking to take part in the digital asset revolution
(33:00) - Weighing decentralization with AML and KYC requirements for crypto

Related resources

Check out more resources provided by Chainalysis that perfectly complement this episode of the Public Key.

Speakers on today’s episode

Ian Andrews * Host * (Chief Marketing Officer, Chainalysis)
Jacobo Toll-Messia (CEO, Nahmii)

The Chainalysis 2023 Crypto Crime Report Preview (Part 1 of 2) Jan 16, 2023

Show notes

The Chainalysis 2023 Crypto Crime Report Preview (Part 1 of 2)

2022 has brought record highs when it comes to DeFi hacks, but also abnormal declines in ransomware attacks. The 2023 Crypto Crime report has the most important financial crime findings in the industry and we get a guided preview.

In this episode, Ian Andrews (Chief Marketing Officer, Chainalysis) is joined by occasional co-host and Director of Research at Chainalysis , Kim Grauer, who walks us through emerging investment and pig butchering scams and identifies the factors impacting ransomware attacks over the last 12 months.

She provides analysis on the financial crimes affecting web3 and the impact the collapses of major crypto institutions had on the rest of the industry. She highlights the biggest use cases for crypto around the world and the sudden movement of funds from dormant accounts held by crypto entities linked to illicit activity .

Minute-by-minute episode breakdown

(3:15) –Crypto crime at an all time high and pig butchering and investment schemes emerging as leading scams
(8:50) – What has happened to Ransomware attacks and crypto payouts over the last 2 years?
(13:05) – Analyzing the NFT, DeFi and web3 financial crime fluctuations in 2022
(17:55) – Tales from the Crypt: Wallet activity of old crypto cases that have come back to life
(20:21) – The biggest takeaways from the Chainalysis 2022 Geography of Cryptocurrency Report
(25:25) – The collapse of crypto juggernauts and the contagion felt by the entire industry

Related resources

Check out more resources provided by Chainalysis that perfectly complement this episode of the Public Key.

Report: The Chainalysis 2023 Crypto Crime Report (Coming February 2023)
Newsletter: 2023 Crypto Crime Report: Sanctions Preview, Key Crypto Moments From 2022, and more
Conference: Chainalysis Links Conference 2023 in New York City
LinkedIn Post: Yolo Group is the first company to integrate Chainalysis products in the #igaming industry
Video: Forkast News: What trends will we see in the regulatory space in 2023?
Twitter: Chainalysis Twitter: Building trust in blockchains
TikTok: Newly launched Chainalysis Tik Tok page
Youtube: Chainalysis Youtube page is completely revamped
Website: Careers at Chainalysis - Join us today

Speakers on today’s episode

Ian Andrews * Host * (Chief Marketing Officer, Chainalysis)
Kim Grauer (Director of Research, Chainalysis)

Why Incident Response Needs are Surging Amidst New Cyber Threats Jan 09, 2023

Show notes

Why Incident Response Needs are Surging Amidst New Cyber Threats

If 2021 was the year of Ransomware then 2022 definitely should be called the year of DeFi hacks. What I’m wondering is there any chance that 2023 can be the year Cyber Security teams take their revenge?

In this episode, Ian Andrews (Chief Marketing Officer, Chainalysis) is joined by two experts from the Cyber Risk team at Kroll, Christopher Ballod (Managing Director) and Jaycee Roth (Associate Managing Director) about this possibility.

Chris and Jaycee walk us through the last 18 months of cyber incidents and ransomware and highlight the changing ransomware attack vectors and changes in the cyber insurance markets. We also learn that companies are getting better at protecting themselves and are becoming less likely to pay ransoms.
* It is noted that Kroll is a Chainalysis partner.

Minute-by-minute episode breakdown

(2:20) – Understanding the various industries Kroll is involved in and how they expanded into the cyber security and risk
(4:55) – When did cryptocurrency start playing a major role in incident response when dealing with cyber threat actors
(11:04) –Start to finish. How does an incident response team respond to cyber threat emergencies
(15:00) – Are companies getting better in 2022 at protecting themselves and their customer’s data against ransomware?
(17:55) – What role does cyber insurance plans play in ransomware attacks and payouts
(21 :40) – The shift of cyber attackers focus from business to personal hacking attempts
(25:35) - Understanding where the vulnerabilities are in our personal and professional network
(30:05) - 2023 Ransomware and Incident predictions and potential outcomes

Related resources

Check out more resources provided by Chainalysis that perfectly complement this episode of the Public Key.