SEC signs contract with CipherTrade to Obtain enforcement solutions
The GovTribe, on March 27, 2018, reported in an article that the SEC intends to engage a single source purchase order with CipherTrade Inc which is a blockchain security, compliance, and enforcement solutions firm.
The strategy to be followed by CipherTrace to uniquely help SEC could be as per the justification mentioned below:
*To provide the SEC staff with access to hunt capabilities as per SECs demands.
*Support services in the use of CipherTrace software tool which is not available to SEC staff under the MOU (Memorandum of understanding) to perform cryptocurrency tracing and analysis.
*SEC will provide addresses, wallets, and contracts which should be traced.
* Provide management support.
SEC’s Office of Acquisitions drafted a document which emphasizes the reason to hire CipherTrace which is to “provide specialized analytical support to SEC staff for investigations that involve tracing cryptocurrency transactions [and] to continue activities associated with the Cryptocurrency Tracing Project, via an MOU [memorandum of understanding] with the Department of Homeland Security’s (DHS) Homeland Security Advanced Research Projects Agency (HSARPA).”
The deal by SEC with CipherTrace could last approximately up to nine months, and according to GovTribe, the purchase order will be awarded on or about April 4, 2018, where the contract is for $26,550.45.
Some time ago, SEC employed an investigative blockchain firm Chainalysis hence making this CipherTrade partnership not sound like a big surprise.
CipherTrace CEO, Dave Jevans stated that CipherTrace offers its services to exchanges, banks, hedge funds, agencies, and researchers among others. For instance, he said, CipherTrace provides application programming interfaces (APIs) to cryptocurrency exchanges to assist with compliance.
While Jevans would not approve or refuse CipherTrace’s partnership with the SEC, independent research shows that the company has previously been tied to government agencies. In fact, according to listings on the Small Business Innovation Research program website, CipherTrace was granted $140,906.16 for phase I of a project to design a blockchain-based secure messaging platform for the Defense Advanced Research Projects Agency (DARPA).
Coindelite has previously reported similar news where Philippines SEC also regulated cryptocurrency transactions to protect its investors in this new space.
SEC also has previously warned users about the illegally introduced coins approved by celebrities as Initial coin offerings (ICO).