A crypto intelligence company was engaged by the US Department of Defense to assess the potential security risk posed by cryptocurrency.
Inca Digital has been charged by DARPA, the Defense Advanced Research Projects Agency, with creating tools to comprehend how cryptocurrency markets operate and aid in combating the unauthorized uses of digital assets that could be dangerous to national security. DARPA is a stand-alone department of the Pentagon-based United States Department of Defense.
In this study, the bitcoin universe is being mapped out in considerable depth, according to programme manager Mark Flood of the organization, who spoke with The Washington Post.
Veterans-owned Inca Digital and Inca Digital Federal, a federal contractor, analyze data from crypto markets, blockchains, news, and social media to provide insight to financial institutions, technological companies, and governmental organizations.
In April, the company disclosed a Series A funding round sponsored by Galaxy Digital and GTS Venture Capital. Wedbush Capital and Menai Financial Group are two other investors.
Many public and private sector organizations, including the Commodity Futures Trading Commission, cryptocurrency exchange FTX, and brokerage firm Fidelity, are clients of Inca Digital.
The announcement coincides with the government authorities’ increased scrutiny of the cryptocurrency industry. Tornado Cash was recently penalized by the Office of Foreign Assets Control (OFAC) of the U.S. Treasury for assisting an infamous North Korean hacking group named Lazarus Group, in the laundering of bitcoin valued more than $455 million.
However the action was challenged by a group of six people supporting Tornado Cash. The group filed a lawsuit against the department for hastily taking the decision to outright ban the privacy focused crypto mixer. They’ve argued that the decision could be discouraging for the whole privacy focusing sector within crypto space.
Source: https://www.thecoinrepublic.com/2022/09/26/u-s-department-of-defense-up-to-evaluate-national-threat-from-crypto-asked-for-probing/