When undertaking a macro-analysis of crypto fund flows, a nuanced, multi-dimensional picture starts to emerge. Jonathan Reiter at ChainArgos presents in this short presentation how, when 'zoomed out', different communities of criminals and terrorists are seen to be using common intermediaries (and exchanges known for their weak controls) to assist in laundering activities. An observation: single-use address provisioning and limitations of clustering heuristics may hamper investigations, and will make source of funds less interrogable. While wallets might be assigned to individuals, omnibus wallets and separate wallets for deposits and withdrawals will complicate lineage. To these points, Jonathan acknowledges that tracing 'through' a service provider is difficult; exchanges in uncooperative jurisdictions will make discovery particularly difficult. Finally, VASPnet shows that many of the exchanges presented on Jonathans slides are poorly regulated; many have a 'negative' regulatory footprint (ie. more warnings than licenses or registrations held). Key takeaway: #CounterpartyVASPDueDiligence can help to stem transfers to or from higher risk #VASPs. What was interesting is that Jonathan refers to brand name; what should come to light is - what legal entity is the address holders' relationship with? VASPnet can help resolve the legal entity associated with the brand name! #cryptocompliance #cryptoregulation #digitalassets
What do sanctioned #Russian #crypto #exchanges, Southeast Asian "pig-butchering" scams, terrorists, and rogue states all have in common? Beyond that they all use crypto, they also seem to all use the same service providers that aren't cryptocurrency exchanges. In this exclusive case study, presented to delegates and dignitaries on April 17, 2024 at the Palace of the Parliament in Bucharest, Romania, for the Digital Innovation Summit Bucharest - DISB, ChainArgos CEO and Chief Data Scientist Jonathan Reiter shows how #blockchain #intelligence can link disparate groups of illicit actors who ought to have no link otherwise. Tracing cryptocurrency transactions, Reiter demonstrates how these distinct groups funnel their funds into a handful of service providers, providing unprecedented insight into the workings of these illicit actors by adopting a macro approach. Almost no one is doing macro analysis of cryptocurrency fund flows, and this case study demonstrates why it's so important. #crypto #cryptocurrency #BNB #blockchain #blockchains #decentralization #immutability #exchange #money #bitcoin #busd #stablecoin #dollar #eth #ether #ethereum #commodities #market #etf #money #invest #investing #investment #strategy #financeandeconomy #returnoninvestment #businessandmanagement #investmentmanagement #investments #tether #tornadocash #moneylaundering #crime #criminal #sanctions #russia #northkorea #stablecoins #binance
