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Crypto Analysis Firm Chainanalysis Releases Detection Tool for Suspicious Transactions

Diagram analysis with many colorful charts
The popular cryptocurrency monitoring and analysis firm Chainanalysis has launched a new tool called Know Your Transaction (KYT), for the detection of suspicious transactions on blockchain networks. The tool is designed to complement existing anti-money laundering (AML) initiatives and help blockchain businesses, crypto exchanges and regulators track possible fraudulent cryptocurrency transfers.
The tool will initially support 15 of the most popular cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC), Tether (USDT), Maker (MKR), DAI, and several ERC-20 tokens, with plans to expand to more tokens over time.
Chainanalysis VP of Products, Jonh Dempsey, says the tool is necessary to help businesses maintain compliance and meet the increasing demands of lawmakers and regulators. “Every minute counts when managing exposure to sanctioned entities, hacked funds, darknet markets, and other illicit activities,” he said, speaking of the new development in a Chainanalysis announcement.
The KYT tool will expand on existing services offered by Chainanalysis and now monitor and alert for transactions that involve risky counterparties or reach certain value thresholds. Alerts will carry certain degrees of urgency, including Severe, High, Medium and Low. Using various characteristics, the tool will scrutinize all transactions on a blockchain in real-time and formulate its evaluation on a transaction’s trustworthiness. Various mitigating factors like the amount of cryptocurrency involved, the service used, fund direction, category and directness of exposure will be used to arrive at a decision.
Crypto exchanges and other blockchain companies can integrate the tool into their services using a customizable API (application programming interface) provided by Chainanalysis. With the growing number of crypto-related crimes occurring lately, most recently the massive PlusToken scam, it is becoming increasingly important to track and monitor networks in a proactive manner.
Last month it was revealed that several perpetrators of the PlusToken scam, which scammed customers out of $3 billion, were arrested by Chinese authorities. It is believed that their attempts to move the money off the market may have contributed to the recent Bitcoin (BTC) price dip. While monitoring and regulation remain points of contention amongst crypto traditionalists, it is becoming increasingly important to secure networks if cryptocurrency ever hopes to go mainstream.

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