Former Chief of IRS-Criminal Investigation, Jim Lee, has announced that he will be joining Chainalysis as their Global Head of Capacity Building. Lee has had a long and successful career in law enforcement, beginning as a special agent with IRS-CI in 1995 and eventually being named Chief in October 2020. Throughout his career, Lee has worked on high-profile cases involving cryptocurrency, including the takedown of Hydra Market, the largest-ever crypto seizure connected to terrorism financing, and the dismantling of the Welcome to Video dark web child pornography site.
Lee emphasizes that virtually all forms of crime are financially motivated, and as technology advances, criminals are constantly adapting and finding new ways to exploit the public. He notes that cryptocurrency has brought greater transparency and efficiency to finance, but criminals have also quickly taken advantage of this digital currency. Chainalysis, the blockchain forensics firm Lee is joining, has played a role in many of the cases he has worked on, either by providing tools that aided the cases directly or by alerting the public to criminal activity.
In 2023, Chainalysis partnered with IRS-CI to train Ukrainian law enforcement officials on blockchain analytics skills, help identify and seize cryptocurrency from Hezbollah, and assist U.S. local law enforcement agencies in tracing payments for illegal fentanyl sales. Lee believes that Chainalysis, as a leader in making cryptocurrency safe, is the ideal place for him to continue his mission of fighting financial crimes. The company, valued at $8.6 billion as of May 2022, uses on-chain data to trace crypto transactions and identify scams, hacks, fraud, and illicit activity involving digital assets.
Chainalysis co-founders Michael Gronager and Jonathan Levin were included in Forbes’ Next Billion-Dollar Startups List in 2019. Gronager, with a Ph.D. in quantum mechanics, co-founded the cryptocurrency exchange Kraken before starting Chainalysis in 2015. Levin, an economist by training, believed entrepreneurship was the best way to answer fundamental questions about how and why people move money globally. As CEO, Gronager leads the company’s efforts to build trust in blockchains with investigation and compliance solutions, while Levin serves as the Chief Strategy Officer.
Lee’s role at Chainalysis as Global Head of Capacity Building will involve working with law enforcement, tax agencies, financial institutions, and regulators to enhance their capabilities in combating financial crimes. Chainalysis is dedicated to ensuring a safer crypto ecosystem, a commitment that aligns with Lee’s tireless efforts in the public sector. Lee views Chainalysis as the perfect platform to continue his life’s work and contribute to making the world of cryptocurrency safer and more secure for all users.
