CUET PG COQP11 Previous Paper (2023 Shift-3)

Read the given passage and answer the questions that follows:

Crypto detectives are cleaning up by cracking down

Before a new breed of cryptocurrency detectives helped bring him down, Ryan Felton marketed his crypto scheme with a grandiose promise: He was creating "Netflix on the blockchain."

He called the crypto-themed streaming service FLiK. For a small amount of the popular digital currency ether, customers could purchase a FLiK token, which would give them access to shows and movies broadcast on the new platform. Felton described the project as an "entertainment revolution-"; crypto enthusiasts bought more than $2 million worth of FLiK coins. But the streaming business never materialized. Instead, Felton bought a $1.5 million house, along with $32,000 in diamonds. He spent $180,000 more for a red Ferrari.

When cryptocurrencies hit the mainstream in the 2010s, the technology was widely viewed as a perfect vehicle for crime. A drug dealer or scamster could transfer large quantities of money without having a bank to validate the transaction. To early advocates, crypto was appealing because it promised the secrecy and anonymity of cash, without the inconvenience of face-to-face exchanges.

That secrecy was an illusion. Crypto transactions are inscribed on a publicly viewable ledger called a blockchain. To the untrained observer, blockchain records are unintelligible - a jumble of meaningless letters and numbers. But a growth industry is dedicated to deciphering them. At the centre is the New York analytics startup Chainalysis, valued at $8.6 billion after its latest funding. With tens of millions of dollars in federal contracts, Chainalysis has build a reputation as one of the crypto industry's leading detectives-a team of blockchin nlysts that helps the government track transactions.

As US federal agencies orchestrate an aggressive crack-down on crypto fraud, Chainalysis has come to occupy an increasingly important position in the industry. The company markets itself to the government and private companies as a force for good in a badly behaved sector - a firm whose business is solving crimes and cooperating with public officials. After the FTX xchang3e imploded, its bankruptcy lawyers hired Chainalysis to disentangle the web of entities at the center of Sam Bankman-Fried's empire and track the $400 million in crypto that a baker stole from FTX. Chainalysis has also been conducting some light diplomacy: In April, it hosted a conference to bring together government officials and the newly chastened crypto executives who are trying to win back trust. Guests received socks stitched with the Chainalysis logo.

But the ambassadorial role has put Chainalysis at odds with some of crypto's passionate advocates, who envisioned digital money as a private, anonymous financial network. That dash also reflects a battle for crypto's future.
From the government's perspective, Chainalysis is arguably the most trusted company in the industry-but only because it sells powerful tools aimed at penetrating the veil of secrecy that made crypto attractive in the first place.

The blockchain is "often-times the key to unlocking a case," said Jonathan of Chainalysis. "It's more traceable and more conclusive."
In late 2020, Felton was indicted on charges that he had used investor's funds to finance his extravagant life-style. He went on trial in Atlanta last summer. Testifying for the prosecution was Beth Bisbee, a Chainalysis investigator who once worked for the Drug Enforcement Administration. In 2014, her analysis of blockchain records helped the DEA track down an internet drug dealer in Arizona.

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