1. What are the five most likely causes for a Bitcoin transaction being marked as ‘suspicious’?
Funds are likely to be flagged as suspicious when they are coming from:
- stolen funds
- DNM’s (dark net markets)
- mixers (Wasabi Wallet, BitLaundry etc.)
- terrorist financing
- ransomware payout addresses
2. Which government agencies use Chainalysis software?
These 3 are the biggest customers (the Chainanalysis license is quite expensive), note, they are all American:
- HSI (Homeland Security Investigations)
- FBI (Federal Bureau of Investigation)
- IRS (Internal Revenue Service)
In addition (again, all from USA):
- ATF (Bureau of Alcohol, Tobacco, Firearms and Explosives)
- DEA (Drug Enforcement Administration)
- SEC (U.S. Securities and Exchange Commission)
- Secret Service
- CIA (Central Intelligence Agency) (through In Q Tel)
- most of the other federal law enforcement agencies
- large police departments like the NYPD (New York Police Department)
- RCMP (Royal Canadian Mounted Police)
- UK National police NCA (National Crime Agency)
The list is not complete and of course we can assume that all big investigation agencies that must follow criminal or terroristic funds want to be able to track bitcoin transactions too.
3. What cryptocurrency does the whistleblower recommend for privacy?
He advsed to use Monero, but based on my own research (a quick google search for “is monero really anonymous” or “monero privacy broken” does it) one must know that there isn’t a 100% super safe coin, see e.g. this article for more info: The Dark Web’s Favorite Currency Is Less Untraceable Than It Seems
4. What advice does the whistleblower give for preserving anonymity when using Bitcoin?
- avoid mobile wallets
- look into Wasabi/Coinjoin and similar efforts (so in other words: use “mixers”)
- run a VPN/tor at all times (remember that everything you check out on the clear net is being logged by someone)
So, said in easy words: for crypto, don’t use a smartphone, but a PC, run a VPN, use mixers to mix your bitcoin (e.g. using Wasabi wallet) and finally convert them to Monero to really make them disappear (later you can still convert your monero to BTC when you need).
Final words: I really enjoyed reading this article and look up all those government agencies abbreviations. These answers are a good summary of the article.