Solutions › Blockchain & Digital Asset Solutions
Decentralized Due Diligence
Assessments tailored to the unique technological needs of web3.
The decentralized nature of crypto-native companies poses specific challenges necessitating technology-centered due diligence. These challenges extend beyond traditional technology and finance, including custody, layer 1 protocols, smart contracts, dApps, token offerings, DeFi projects, crypto mining operations and crypto exchanges. Our services are designed to effectively address these unique challenges, offering expertise and insights that surpass and complement traditional document-based due diligence assessments.
FTI Technology’s Blockchain & Digital Assets Practice leads technology-centered due diligence assessments across the industry. We guide investors, transaction teams, crypto-native companies, strategic buyers and traditional organizations looking to incorporate digital assets into their operations. We deliver actionable reports focused on digital risk mitigation and industry best practices by independently evaluating market position, technical and business operations, governance practices, leadership teams and security postures.
Transactional Due Diligence
Transactional due diligence is essential for investors moving into web3 businesses. Our team of experts can evaluate a target’s reliability, legitimacy and positioning for success. We validate and verify assets under custody and review whether the industry’s best practices have been implemented across technologies and program development. Additionally, we evaluate company leadership, organizational governance, and third-party vendor programs to identify and mitigate potential risks such as regulatory non-compliance, data breaches and funds flow. This comprehensive assessment helps investors make informed, risk-based decisions and protect their investments.
Services Include:
- Operational Diligence
- Technology Assessments
- Regulatory Risk and Compliance Assessments
- Custody of Virtual Assets
- Third-Party Risk Assessments
Regulatory Compliance
Cryptocurrencies and digital assets operate internationally and must comply with various regional regulations. Organizations need to adhere to these laws to earn the trust of customers and regulators, and avoid penalties for non-compliance. Whether organizations use digital assets for transparency, security or efficiency, senior leaders must understand the associated risks and fulfill compliance obligations.
FTI Technology’s Blockchain & Digital Assets experts have extensive experience in managing complex regulatory and compliance issues on behalf of senior management and outside counsel. We assist organizations in understanding their specific obligations and risks, and can create, implement and enhance cost-effective and defensible programs. Our services are tailored to a diverse range of clients, including emerging startups, established industry leaders and legal advisors seeking practical expertise for their clients.
Services Include:
- AML and Sanctions Program Audits
- Safety, Soundness and Prudential Risk Reviews
- Interim Compliance Roles (CCO, CRO, AML Officer, Sanctions Officer)
- Transaction Monitoring and Rules Tuning
- Licensing Application Assistance
- Regulatory Examination Prep
- Product Listing Program Reviews
- Anti-Fraud Program Advisory
- Compliance Training and Education
- Remediations and lookbacks
- Compliance Tool Integration and Optimization
- Data Maturity, Modeling and Validation Assessments
Proactive Due Diligence for Maturing Crypto Entities
The rapid development of decentralized technology is unprecedented. Adjusting strategies and pivoting to remain competitive can outpace the implementation of new controls and data management techniques. Conducting proactive, thorough due diligence can improve a company’s roadmap with built-in security, regulatory compliance and best practices, reducing operational and financial risk as the company expands.
Services Include:
- Layer-1 Assessments
- Virtual Asset Custody Assessments
- Governance, Staffing and Executive Team Assessments
- Regulatory Compliance Program Roadmaps
Representative Engagements
Transactional Due Diligence – Galaxy Digital
Cryptocurrency advisor, technical advisor and financial due diligence advisor for Galaxy Digital Holdings Ltd. (TSX: GLXY), a financial services and investment management innovator in the digital asset, cryptocurrency and blockchain technology sectors, in its potential purchase of BitGo, a leading independent digital assets infrastructure provider. FTI Technology’s Blockchain & Digital Assets experts provided Galaxy Digital with a detailed and verified technical audit of the cryptocurrency assets under BitGo’s custody and BitGo’s technology roadmap, infrastructure, business models, and privacy and security practices.
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The emergence of cryptocurrencies, NFTs, and other digital assets presents unique opportunities and challenges for blockchain-centric companies, traditional financial institutions, and legal teams worldwide.
The decentralized nature of crypto-native companies poses specific challenges that require technology-centered due diligence. These challenges extend beyond traditional technology and finance, including custody, layer-1 protocols, smart contracts, dApps, token offerings, DeFi projects, crypto mining operations, and crypto exchanges. FTI Technology’s services are designed to effectively address these unique challenges, offering expertise and insights that surpass and complement traditional document-based due diligence assessments.
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