Posted on 04-27-2020.
If anything is perceived as valuable, there is always someone who seeks to illegally obtain it, be it money, art, or luxury items. In recent years, this list embraced cryptocurrencies as well: to some, they have become a coveted prize that opens a fast track to wealth. And there are lots of ways to seize someone else’s bitcoins: exchange hacks, ransomware, and phishing, to name only a few. Still, every action finds a counteraction, so it’s only reasonable that this criminal activity faces attempts to tackle it. Physical protection of infrastructure is not enough, though: the open nature of bitcoin and other cryptocurrencies enables one to trace their movement and, if they really want to, identify the person behind a given transaction. It seems that the emergence of specialized software for making the process more efficient was only a matter of time. These days, there are several companies offering those solutions with Elliptic, CipherTrace, Crystal Clear, BitFury, and Chainalysis being the most renowned of them. The latter has made it twice to the Forbes Top 50 fintech companies lists in 2018 and 2020. It is a recognized leader in this niche.
“Forming relationships with the people at Barclays let us understand what banks need in order to feel confident operating in the cryptocurrency market. We wouldn’t have that access without the Barclays Accelerator Programme – and they wouldn’t be able to operate in the Cryptocurrency market without knowing how to prevent crypto-money laundering,” Gronager says.
“Bitcoin can be used for good and bad. I don’t want North Korea building nuclear weapons because of cryptocurrencies,” he said commenting Chainalysis’s claims that North Korea has accumulated $1.5 billion worth of cryptocurrency to circumvent international sanctions.Levin, however, was at some pains answering the host’s question of whether he would feel comfortable knowing the government traces every single cash transaction. That was not surprising, though, considering McCormack dubbed Chainalysis the enemy of freedom a few months ago. Not everyone agreed with that. https://twitter.com/zcoinofficial/status/1175279162363265024?s=21 https://twitter.com/zcoinofficial/status/1175286462075396096?s=21 https://twitter.com/zcoinofficial/status/1175286995553116167?s=21
“I personally love it. The company management hates it, of course. Things like that destroy the need for our/their software. It can make the software completely irrelevant.”According to him, even regular private coins can successfully withstand Chainalysis’s tools. With anonymization techniques on top of that, the company’s efforts seem downright futile.
“I would say Wasabi is enemy number one. There is no way to de-anonymize it, and I don't see how the government can legally take Wasabi down, so it will probably persist. Put it this way, if everyone used Wassabi, Chainalysis would go out of business,” the anonymous topic starter added.He also noted that running your own node and an electrum server is another great way to go below Chainalysis’s radars without disclosing your IP. The deleted AMA also revealed that Chainalysis runs its own Electrum nodes. At one point the company is believed to have run about 10% of all Bitcoin nodes. The anon, however, refuted the rumors suggesting that the company uses so-called dusting attacks on the addresses for tracking purposes. A dusting attack is a kind of attack when someone sends a small number of coins to the wallet of interest and then tracks its activity in order to find out who uses it. The topic starter said that those actions would be useless as it would not improve the quality of tracking. Cryptocurrencies going out of mixers are marked as highly risky, just as the coins that had been involved in darknet transactions. For greater anonymity, it was recommended to use Monero in combination with VPN and Tor, and not to trust mobile wallets too much. Whether Chainalysis is indeed an enemy of freedom, or, on the contrary, they make cryptocurrencies more acceptable to financial regulators and the general public is a question without a single answer. Quite possibly, they do both. Everything depends on your own political stance in this regard. What is clear, however, is that caring about your privacy is of paramount importance in the days when personal information becomes a valuable asset for governments and criminals alike. Written by Andrew Asmakov Edited by Jenny Aysgarth Follow us on Twitter and Facebook and join our Telegram channel to know what’s up with crypto and why it’s important.