Data transparency has been a focal point for the crypto industry, but the FTX fiasco has shown that centralized exchanges (CEX) are not transparent enough. So far, crypto analytics firms are apparently not capable of tracking transactions to prevent collapses like FTX.

According to Chainalysis, a major blockchain data platform that cooperates with many governments across the world, there is currently no on-chain tracking tool that could trace funds through a CEX.

“Chainalysis — or any other blockchain analysis tool — can’t trace funds through a centralized service, because the way that these services store and manage funds deposited by users inherently makes further tracing inaccurate,” a spokesperson for Chainalysis told Cointelegraph.

(By HELEN PARTZ)