Chainalysis, a New York-based blockchain data platform, announced on Monday that it will start covering the so-called meme coin, Dogecoin (DOGE). The decision comes in the wake of the increasing popularity of the cryptocurrency due to its widespread endorsement by high-profile personalities such as Tesla’s CEO, Elon Musk, but at the same it, the company says the coin has been catching the attention of criminals.

During the announcement, Chainalysis quoted the volume figures that Dogecoin has been printing so far this year. Also, the firm says that it has naturally led to an increased usage of the meme coin for criminal purposes.

“We’ve seen several thefts and scams involving Dogecoin this year, including one giveaway scam that netted fraudsters over $40,000 after they promoted a bogus, Elon Musk-led initiative to pay users 10x back on any cryptocurrency sent to an address they provided, using hacked Twitter accounts to promote the scam following the Tesla CEO’s hosting appearance on Saturday Night Live. Dogecoin has also become popular in high-risk jurisdictions like Iran,” Chainalysis said. Furthermore, the analytical company commented that Dogecoin had become a “frequently requested” crypto from customers to cover within their reports.

Fake Giveaway with Dogecoin

The giveaway scam mentioned by Chainalysis occurred in May when cybercriminals took advantage of Musk’s appearance on Saturday Night Live to launch such fraudulent giveaway campaign via Twitter. Reports noted that hackers netted around $100,000 in Bitcoin (BTC), Ethereum (ETH) and Dogecoin. Unfortunately, victims fell prey to the scam by sending small amounts of the crypto, as the fraudsters promised to return ten times the amount invested in the giveaway.

The announcement comes after the blockchain firm secured $100 million in the latest Series E funding round led by the US-based company, Coatue. In addition, Chainalysis’ existing investors, including Benchmark, Accel, Addition, Dragoneer, Durable Capital Partners and 9Yards Capital, also increased their investment in the blockchain analysis firm.