This isn't the first workforce adjustion for Chainalysis's operations this year. They had earlier reduced staff by 5% in February.
The firm said that it plans to transition from the commercial market and gravitate towards government contracting, which is perceived as more stable.
About 70% of company revenue is generated from the public sector, according to Forbes.
Chainalysis, in particular, collaborates with respected public sector agencies, including the FBI and the U.S. Securities and Exchange Commission.
Chainalysis, established in 2014, became a renowned authority in tracking crypto transactions and identifying the parties involved. The organization's main objective is to combat cybercrimes and other cyber-related offenses.
Even after securing $170 million in a Series F funding round, Chainalysis finds itself adapting to the bear market, as many other crypto companies.
Huobi, Coinbase, Crypto.com, and Bittrex also reported staff reductions this year.