How often do you think about dirty cryptocurrency?
How many users actually think about avoiding receiving dirty cryptocurrency? Information about blocking on exchanges and various scam schemes is widely known, but does this lead to an awareness of specific precautions? And if such thoughts arise, is the user aware of the specific steps that should be taken?

This issue is of particular importance to us as we are the developers of the "Btrace" solution, a tool for verifying cryptocurrency addresses. We decided to address the community with this question, as well as many others, by conducting in-depth interviews and surveys in various telegram groups.

A total of 585 users participated in surveys and interviews. We would like to share some of the responses we received:

Have you heard of cases where a user had negative consequences (blocking, questions about the origin of funds, refusal to cooperate) due to dirty funds?

Do you do an AML check on the counterparty before accepting crypto to your address?

Do you track risk scoring and its changes over time at your addresses?

What price for AML verification for each of your transactions do you consider acceptable?

Observation from
AML Crypto
Fraud and the fight against it are an endless battle between attack and defense, where improvements in defense tools stimulate the development of more sophisticated attack tools, and vice versa.

The ideal would be to live in a safe world without making special efforts. However, even the most advanced security tools will not be able to protect you if you do not use them.

Why does this happen? Perhaps other people's examples do not seem convincing enough, and often personal experience is required to understand the problem - for example, blocking funds on an exchange at a critical moment or a request from law enforcement agencies demanding an explanation of a transaction made six months or more ago.

Perhaps these tips will be most useful for those who have already encountered similar problems - for those 4-5% who no longer need to be convinced of the need for precautions. However, they may also be useful for those who exercise due prudence and want to avoid similar difficulties in the future.
Recommendation №1
negotiate with your counterparties on preliminary checks of crypto addresses and conditions if, after the transaction, it turns out that the crypto is of murky origin
Before starting cooperation, we recommend discussing with the counterparty the need to check crypto addresses for the riskiness of the origin of funds. Set the Risk-score threshold value that is acceptable to you (for example, less than 60%).

If a counterparty has questions about such verification, explain that your goal is to avoid possible blocking on exchanges and eliminate the possibility of participating in transactions with dirty crypto. Emphasize that the problem may not lie in the personal reputation of the counterparty, but in the original sources of funds.
Agree on a service that is acceptable to both parties. You can use a variety of tools to perform the check, including our Btrace service. By the way, after the verification, you have the opportunity to share a report with the results for your counterparty for free.
Recommendation №2
Verify counterparties for every transaction (including senders and recipients)
With every financial interaction with a third-party crypto address, there is a risk of getting "dirty" assets or a deterioration in the rating (risk-score) of your own address. This can happen both when sending and receiving funds.
Request transaction details. Check with the sender of the funds from which address the funds will be sent in your direction.
Analyze the counterparty's address. Check it for associations with “dirty” means or an undesirable level of risk score.
Evaluate the risk-rate with special attention.
  • If the risk score is in the range from 60 to 69%, pay attention to a detailed analysis of the counterparty: study references to the address associated with it on the Internet and be sure to save all correspondence with this counterparty. You may need this information in the future to discuss the origin of funds with the exchange.
  • If the risk-rate exceeds 70%, it is recommended to refuse a transaction with this counterparty, even if he offers to use his other addresses.
By making each transaction consciously and taking into account the practices described above, you will significantly reduce the risks of interacting with problematic assets and preserve the reputation of your crypto addresses.
Recommendation №3
Save the results of your checks
Over time, your counterparty's risk rate may change.

It is important to always have evidence of your due diligence at the time of the transaction. Having a report that is time-stamped in the past shows you in the best possible way.
Recommendation №4
use new addresses unrelated to you when it is not possible to verify the counterparty
It is not always possible to know in advance from which address you will receive cryptocurrency. For such cases, always create a separate cryptocurrency wallet that is not associated with you.
After the funds are credited, check the risk score of your address and the sender of the funds. If the risk-score turns out to be high, give up the idea of mixing with your other products.
Recommendation №5
Change your cryptocurrency addresses periodically
AML services are constantly improving address marking methods, incidents are being investigated, new behavior patterns are being analyzed, and the scoring model is being improved.

Sometimes the identification of addresses of attackers occurs after a while, so the risk-rate of certain addresses may change as a result of retrospective analysis.
Thus, a source of funds that was once considered good may change its color. And through transit addresses, bring changes to your address to the Risk-score indicator and the composition of funds.
Recommendations on the frequency of changes largely depend on the activity of using the blockchain address, the type of counterparties and your caution.
Recommendation №6
Update your cryptocurrency addresses periodically
Before each deposit of funds to the exchange deposit address, make sure your crypto address is verified.

This will minimize blocking of funds on the exchange. Never give the deposit address linked to your exchange account to someone else for the payment destination address. Because if the sender's address to your deposit address turns out to be dirty funds, all your addresses from which funds come may be classified as suspicious.
AML services are grouped based on different principles into single entities. A single deposit address is one of the algorithms. The risk-speed of addresses within a single entity influence each other.
Recommendation №7
do not use mixing services, anonymous tokens, darknet services (even through transit addresses)
Anonymization tools are usually used by people who are trying to hide the source of origin of funds, since the funds were obtained illegally, or by adherents of anonymity.

While we respect the right to anonymity, most users find such measures excessive and inappropriate.

Lovers of anonymity should understand: increased risk is the price they will pay for being in the company of those who use mixers to hide the illegal origin of their funds.
Particular attention should be paid to interaction with the darknet. Some people buy various goods on it, but alas, sending funds to high-risk addresses automatically puts you in the eyes of the system among the ranks of potential participants in illegal transactions.
Recommendation №8
Prefer large cryptocurrency exchanges and exchanges that conduct AML procedures and require KYC
Anonymity has its benefits, and many people don't like the idea of sharing their personal data with every exchanger.

However, if the site does not require you to go through a verification process, it also does not require it from potential attackers. This increases the likelihood of dirty cryptocurrencies on the platform and the risk of being subject to regulatory action. Connecting with an exchanger that has a reputation for money laundering is unlikely to have a positive impact on your address's risk score.
If you require more detailed advice, please contact us. We at AML Crypto are always happy to help make the blockchain world more transparent and better.
Check blockchain address using Btrace
In seconds, determine the risk level of the counterparty’s address, find out the source of his funds and make an informed decision about interacting with him.




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