Why it is necessary to check cryptocurrency for cleanliness or criminality
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- Created: Wednesday, 22 September 2021 01:42
The official adoption of cryptocurrencies by different countries around the world increasingly raises the question of controlling the criminal flows of cryptocurrencies. If just a few years ago such concept as "dirty bitcoin" was something new and unfamiliar, now in 2021 every cryptocurrency user should know that there is a blacklist of cryptocurrency addresses and tokens where stolen cryptoassets are stored. And if you think that this is only a problem of states and companies, you are very wrong. Because any purchase of cryptocurrencies at an exchanger or uncontrolled exchange can have stolen cryptocurrency deposited into your account, which will automatically mark all your funds as suspicious. And if you try to exchange or sell this cryptocurrency on major licensed exchanges like Binance, FTX, Poloniex, Coinbase, your account will be blocked until you provide proof of receiving your funds legally, which frankly will not be that easy. To put it simply, in the nearest future you will not be able to legalize your crypto assets and you will be able to sell them only on black market with discount and with further risk to get under suspicion of tax and law enforcement service of your country, where you also will not be able to explain the source of your income, because initially all your crypto assets will be considered as stolen. To protect yourself from risky deals there is AMLBot.com service, which we recommend to use for any deals with cryptocurrencies and tokens on OTC market: P2P exchange, exchangers, buying from private persons and unlicensed companies. Let's tell about cryptocurrency and token verification service in more details.
With AMLBot.com you can verify individual transactions and entire wallets, not only for Bitcoin, but also for Ethereum, Tether, Litecoin, Ethereum classic, Bitcoin Cash, Ripple, Bitcoin SV, OMNI. There are also more than 1500 tokens in the ERC20 network (Tether, BNB, QC, NEXO, TUSD) including DeFi tokens available for verification. I.e., with AMLBot you can secure yourself in all popular crypto-assets exchange directions today.
To check the quality of the service immediately after registration you will have 2 free checks, then you will be offered to buy one of three packages with 25, 100 and 1000 checks. The price for the minimal package is 2$ for one check and 0,3 USD for the maximal package of 1000 checks. If you register through our link you will additionally get 5% discount on all the purchases at AMLBot.com: Link for registration
Checking cryptocurrencies and tokens for purity can be done on the website and in the Telegram bot with the same name: AMLBOT.
Checking the purity of the origin of funds on AMLBot can be done in two ways: Basic check and Investigation
Basic check of crypto wallets for AML (Anti money laundering)
Basic verification of crypto wallet includes analysis of all incoming payments and identifying in this list of known systems. Unknown crypto addresses are considered clean by default and do not participate in the ranking, usually they are wallets of individuals not associated with crime. All other addresses are divided into 3 categories: Reliable, Suspicious and Dangerous.
Reliable addresses. Have a risk level between 0 and 25%: miners, exchanges with KYC/AML, P2P with KYC/AML, proven stores and services, payment services like PayPal.
Suspicious addresses. Have a risk level from 26% to 50%: Exchanges without KYC/AML, P2P without KYC/AML, crypto machines, casinos without a license.
Dangerous addresses. Have a risk level from 51% to 100%: Stolen, used in the Dark Market, assets obtained by fraud and blackmail, Mixers, exchanges and services related to illegal activity.
After determining the sources of incoming transactions, the risk rating of the inspected wallet or transaction is compiled. It can be from 0 to 100%. Where 100% is the maximum risk of getting criminal (stolen) crypto coins or tokens.
The risk rating is calculated based on the weight of each transaction, i.e. the number of coins transferred.
For example, if 1 BTC from Binpace exchange with 25% rating and 1 BTC from mixer with 100% rating were sent to BTC purse, your total sum will be 2BTC with rating (25*1+100*1)/2=62.5%. Ie this wallet will be marked as dangerous
In second example, from Binance (25% risk) also comes 1BTC, but from Mixer (100% risk) comes 0.1BTC. Rating of this wallet will be marked as suspicious: (25*1+100*0.1)/1.1 = 31.8%.
In the second case, the wallet is considered suspicious, but because it has at least one dangerous transaction may already be blocked for deposit on exchanges, depending on whether or not the stolen assets are associated with pending criminal cases.
Therefore, if a crypto wallet has at least one dangerous transaction, it is necessary to use the Investigation service.
Investigating a crypto wallet for stolen crypto coins and tokens
As already mentioned, the Investigation service should be used when there are dangerous incoming transactions, especially since this service costs five times the price of a regular check.
In the Investigation report, you will get the whole tree of transactions (transfers) for the wallet being checked, with the sources and their risk level. Based on this data, you will be able to estimate the risk level of the transfer. For example, receiving crypto assets from a wallet that is known to contain stolen funds should be avoided in any case. Funds received from a mixer also will not add trust to your savings, but potential problems with legalization of your income will be much less.
Conclusion: The origin of the crypto assets you purchase (cryptocurrency, tokens, NFT) is worth paying close attention to now. Because right now, the legal framework for protecting crypto property rights is not fully formed yet, but the tracking of potentially criminal assets is already underway on a serious level. Because of that, you can easily find yourself in a situation where your savings in cryptocurrency can be blocked or confiscated on suspicion of money laundering. And you will not be able to do anything about it, as there are no laws, legal and investigative practices for solving such crimes. So if you already have savings in cryptocurrency, we strongly recommend you to check your wallets for suspicious transfers and to take possible measures for getting rid of this "tail" right now, because in a year or two it will be even harder. For those who just decided to buy cryptocurrency we recommend to buy it only from exchangers, where there is KYC and AML, e.g. from companies, which verify their clients by passport, like Binance, FTX, Bybit. In case you have to get cryptocurrency from unverified sources, have a separate wallet for this case, which does not store your main crypto assets.