Case Study
Large Financial Services Company Turns to FTI Technology for Business Intelligence Assessment in Prospective Partnership with Layer-1 Blockchain Platform
When a Fortune 100 company was exploring a partnership with a layer-1 blockchain platform, FTI Technology’s Blockchain & Digital Assets practice was engaged to conduct a reputational, operational and financial diligence of the target.
Situation
In the aftermath of previous cryptocurrency market turmoil, a large financial services institution sought to gain deeper insights into a blockchain platform it was considering as a potential partner. This financial institution understood the critical importance of thorough due diligence in the blockchain and digital asset space, where operational, legal and reputational factors can significantly impact business relationships.
These in-depth assessments require specialized expertise and a multifaceted approach to risk evaluation, encompassing technical, financial governance and other aspects unique to the cryptocurrency industry. Given the scrutiny and high stakes surrounding the space, the company was cautious in its approach of the partnership decision, considering numerous nuanced opportunities and potential pitfalls.
Our Role
FTI Technology was engaged to conduct a comprehensive business intelligence assessment and due diligence of the blockchain platform, aiming to identify and evaluate potential risks and vulnerabilities associated with its personnel, operations, regulatory compliance and public perception.
The due diligence included detailed evaluations of:
- Corporate structure and governance
- Executive backgrounds and responsibilities
- Digital media presence
- Industry relationships and partnerships
- Financial health and token economics
- Technical infrastructure and blockchain performance
- Reputational risks
- Threat landscape
- Regulatory compliance and risk management
The team also conducted a preliminary analysis of the platform’s relationships with other crypto companies that recently faced scrutiny, providing context to support the client’s decision making.
Our Impact
Multifaceted pre-partnership review:
FTI Technology’s comprehensive report highlighted strengths and areas for concern in critical areas such as corporate structure, reputational risk, adverse publicity, operational risk, governance and regulatory risks. It provided valuable information about the strengths and potential areas of concern, allowing the client to thoroughly assess the partnership opportunity.
Crucial viability data:
Provided the client with crucial data to make an informed decision about the viability of the prospective partnership. This essential data evaluated the long-term potential of a partnership, including a comprehensive analysis of the platform’s financial health covering sources of wealth, token distribution and exposure to financial crime.
Comprehensive technical and operational risk overview:
Provided the client with a comprehensive view of the operational risks and opportunities. Conducted an in-depth evaluation of the blockchain’s technical performance, including an analysis of downtime incidents and their impact on token prices.