How to check USDT TRC20 transaction for purity and risks

Cryptocurrencies have grown in popularity over the past five years, from a little-known means of payment to a tool used by investment funds. However, as their popularity has grown, so has the number of illegal transactions and fraud.

The volume of high-risk assets in the blockchain network adds to the risk of the average user being left with locked assets if they come into contact with dirty funds. To protect your funds, it is better to check the purity of the cryptocurrency.

In this article, AML Crypto will tell you about ways to check your USDT wallet, as well as what risks to consider when transferring cryptocurrency.

Stablecoins are a type of cryptocurrency that is pegged to the value of fiat money, such as the US dollar. Tether (USDT) is a popular stablecoin used to store and exchange cryptocurrency transactions. USDT runs on popular blockchains, including TRC20, the Tron network token standard, which allows users to make transactions with high speed and low fees.

In the cryptocurrency sphere, scam transactions account for a significant part of the transaction flow. It is worth considering that more than half of the transactions in blockchain networks are clean transactions - commission payments. Thus, the volume of dirty transactions is high. According to Statista, in 2019, the volume of illegal transactions rose to 1.9%, and by 2022, illegal transactions account for 0.24% and today the figure continues to increase.

USDT token standards vary depending on the blockchain. For example, the ERC20 token is hosted on the Ethereum network, the BEP20 token is hosted on the Binance Smart Chain network, and the TRC20 token is hosted on the TRON network. Other blockchains have their own USDT token standards if they are hosted on the network.

The transaction verification process is a process that is required for exceptional cases or upon official request from the exchange or law enforcement agencies. The transaction verification includes a study of wallets to find out the origin of funds from previous counterparties, for example, for all usdt trc20 tokens. As a result of the transaction verification, a report is provided by the Compliance officer.

The counterparty verification is an analogue of the transaction verification. The counterparty verification is an analysis of the crypto assets owned by the address. The result of the counterparty verification is a PDF report, which displays the Risk Score of the address being examined, as well as additional information about the address' risks. In case of a request to check USDT, and the counterparty's Risk Score can be done in the Btrace tool.

To verify the address you need:

Priority networks for verification:

The Bitcoin network, being pseudo-anonymous, passes high-risk transactions through itself using internal technologies, such as Coinjoin. The Bitcoin network has mixer tools that pollute funds, so the Bitcoin network ranks first in terms of frequency of verifications.

EVM networks such as Ethereum and Binance Smart Chain are large networks on the basis of which DeFi tools, exchange platforms and marketplaces are created. These networks are popular for scams and phishing for inexperienced users, as they attract scalability in terms of the number of services.

The TRON network is abundant in phishing transactions. Tron is a network that should be treated with more caution when dealing with transactions, since attackers on this network create bots and smart contracts that pollute the network. Checking USDT on this network is an important step to ensure the safety of your funds, as the USDT token is popular on the TRON network.

The Venom and Everscale networks (TON also belongs to TVM networks, but its statistics are not taken into account) do not have dirty funds and address verification is required in exceptional cases, if there are doubts about the counterparty.

Why check the counterparty:

Checking the counterparty before conducting a transaction is the first step to protect against emerging risks. Checking the counterparty prevents documented fraud, prevents money laundering and reduces financial risks.

Checking the usdt trc20 transaction for purity and risks is a necessary step to ensure security and regulatory compliance. Using special tools and following practical recommendations will help minimize risks and protect your funds. Responsible use of cryptocurrencies contributes to the development of a safe and trustworthy cryptocurrency market.