Chainalysis - Reading Assignment

Read a summary of a since-removed Reddit AMA by an (alleged) employee of Chainalysis. Answer the questions and post your answers below:

  1. What are the five most likely causes for a Bitcoin transaction being marked as ‘suspicious’?
  2. Which government agencies use Chainalysis software?
  3. What cryptocurrency does the whistleblower recommend for privacy?
  4. What advice does the whistleblower give for preserving anonymity when using Bitcoin?

1.Being stolen funds (like from a hacking type incident), coming from a dnm, coming from a mixer, coming from terrorist financing, and coming from ransomware payout addresses.”

  1. HSI, FBI and IRS “ATF, DEA, SEC, Secret Service, CIA (through In Q Tel), and most of the other federal law enforcement agencies are running the software. Only really large police departments are running the software (it isn’t cheap) like NYPD. I know some district attorney offices have software licenses too and RCMP uses the software too. And Europol. The national police (NCA) in the UK, as well.”
  2. Mixers and Monero
  3. Use Coinjoin, Wasabi avoid mobile wallets, look into Wasabi/Coinjoin and similar efforts, run a VPN/tor at all times, remember that everything you check out on the clear net is being logged by someone.”
3 Likes
  1. What are the five most likely causes for a Bitcoin transaction being marked as ‘suspicious’?
    • Being stolen funds (like from a hacking type incident)
    • Coming from a dnm
    • Coming from a mixer
    • Coming from Terrorists financing
    • Coming from Ransomware payout addresses
  2. Which government agencies use Chainalysis software?
    • HSI
    • FBI
    • IRS
    • ATF, DEA, SEC, Secret Service, CIA
    • Large Police Departments like the NYPD, RCMP in Canada, Euorpool and the National Police (NCA) in the UK
  3. What cryptocurrency does the whistleblower recommend for privacy?
    Monero
  4. What advice does the whistleblower give for preserving anonymity when using Bitcoin?
    Avoid Mobile Wallets, Look into Wasabi/CoinJoin and similar efforts, run a VPN/TOR at all times and remember that everything you check out on the clear net is being logged by someone.
2 Likes

1.Being stolen funds, coming from a darknet merchant, coming from a mixer, coming from terrorist financing, and coming from ransomware payout addresses.
2. HSI, FBI and IRS, ATF, DEA, SEC, Secret Service, CIA and most of the other federal law enforcement agencies are running the software, NYPD, RCMP, Europol and NCA in the UK.
3. Monero
4. Avoid mobile wallets, look into Wasabi/Coinjoin and similar efforts, run a VPN/tor at all times, remember that everything you check out on the clear net is being logged by someone.

1 Like
  1. What are the five most likely causes for a Bitcoin transaction being marked as ‘suspicious’?
    Being stolen funds, coming from a darknet markets, coming from a mixer, coming from terrorist financing, and coming from ransomware payout addresses.

  2. Which government agencies use Chainalysis software?
    HSI, FBI, IRS, ATF, DEA, SEC, Secret Service, CIA, federal law enforcement agencies and large police departments.

  3. What cryptocurrency does the whistleblower recommend for privacy?
    Monero.

  4. What advice does the whistleblower give for preserving anonymity when using Bitcoin?
    Running your own node and electrum server to not get your IP tracked, avoid mobile wallets, look into Wasabi/Coinjoin and similar efforts, run a VPN/tor at all timesa and avoid using clearnet.

1 Like
  1. Bitcoin transactions are marked as suspicious when they are related to funds coming from theft, the darknet market, a mixer, terrorist financing or ransomware payout addresses.
  2. According to the article, Chainalysis is used by HSI, FBI, IRS, ATF, DEA, SEC, Secret Service, CIA, NYPD and other large police departments, RCMP, Europol, NCA, some district attorney offices and most of the federal law enforcement agencies.
  3. He suggests the use of Monero
  4. He suggested to avoid mobile wallets, use Coinjoin, evaluate using Wasabi and similar privacy wallets and run a VPN/tor at all times.
1 Like

[quote=“Grant_Hawkins, post:1, topic:13036”]

  • What are the five most likely causes for a Bitcoin transaction being marked as ‘suspicious’?
    -Being stolen funds (like from a hacking type incident)
    -Coming from a dark net market
    -Coming from a mixer
    -Coming from terrorist financing
    -Coming from ransomware payout addresses.

  • Which government agencies use Chainalysis software?
    AHSI, FBI , IRS ,ATF, DEA, SEC, Secret Service, CIA (most of the other federal law enforcement agencies), large police departments like NYPD, in Europe, RCMP, Europol, NCA (uk).

  • What cryptocurrency does the whistleblower recommend for privacy?
    Monero

  • What advice does the whistleblower give for preserving anonymity when using Bitcoin?
    Avoid mobile wallets, never use unsecured internet connections to che ck out informations and use always systems like vpn/tor.

1 Like
  1. Being stolen funds (like from a hacking type incident), coming from a dnm, coming from a mixer, coming from terrorist financing, and coming from ransomware payout addresses.
  2. The government agencies using Chainalysis software include HSI, FBI and IRS.
  3. Monero.
  4. To avoid mobile wallets, look into Wasabi/Coinjoin and similar efforts, run a VPN/tor at all times
1 Like
  1. stolen funds, coming from a mixer, coming from a ransom ware address, from a dnm
  2. fbi, irs, hsi , dea , cia , secret service, nci, nypd, district attorney offices, eurpol
    3.monero and mixers
    4.use mixers, vpn and tor
1 Like
  1. Blackmarket activity, hacks, mixer connection, terrorist activity, ransomware.

  2. FBI, ATF, CIA, RCMP etc… It’s still to costly for small police departments.

  3. Monero is the suggested privacy coin.

  4. Using a VPN, mixers, no mobile wallets.

1 Like
  1. Being stolen funds, coming from a darknet market, coming from a known mixer, coming from terrorist financing, and coming from ransomware payout addresses.

  2. HSI, FBI, IRS, ATF, DEA, SEC, Secret Service, CIA, Police and others.

  3. Monero,

  4. Avoid mobile wallets, use Wasabi/Coinjoin and similar efforts, run a VPN/tor at all times.

1 Like

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

Then:

  • large police departments like the NYPD (New York Police Department)
  • RCMP (Royal Canadian Mounted Police)
  • Europol
  • 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.

4 Likes
  1. Being stolen funds, coming from a darknet markets, coming from a mixer, coming from terrorist financing, and coming from ransomware payout addresses.
  2. HSI, FBI, IRS, ATF, DEA, SEC, Secret Service, CIA, federal law enforcement agencies and large police departments.
  3. Monero.
  4. Running your own node and electrum server to not get your IP tracked, avoid mobile wallets, look into Wasabi/Coinjoin and similar efforts, run a VPN/tor at all times and avoid using clearnet.
1 Like
  1. What are the five most likely causes for a Bitcoin transaction being marked as ‘suspicious’?
    BTC from stolen funds (like from a hacking type incident), coming from a dnm, coming from a mixer, coming from terrorist financing, and coming from ransomware payout addresses.

  2. Which government agencies use Chainalysis software?
    All

  3. What cryptocurrency does the whistleblower recommend for privacy?
    Monero

  4. What advice does the whistleblower give for preserving anonymity when using Bitcoin?
    Use Wasaby wallet, coinjoin, dont use mobile wallets.

1 Like
  1. What are the five most likely causes for a Bitcoin transaction being marked as ‘suspicious’?
    Being stolen funds (like from a hacking type incident), coming from a dnm, coming from a mixer, coming from terrorist financing, and coming from ransomware payout addresses.

  2. Which government agencies use Chainalysis software?
    HSI, FBI, IRS, ATF, DEA, SEC, Secret Service, CIA, NYPD, RCMP, Europol, NCA.

  3. What cryptocurrency does the whistleblower recommend for privacy?
    Monero

  4. What advice does the whistleblower give for preserving anonymity when using Bitcoin?
    use CoinJoin/Wasabi, VPN/tor, don’t use mobile wallets

  • What are the five most likely causes for a Bitcoin transaction being marked as ‘suspicious’?
    stolen funds (like from a hacking type incident), coming from a dnm, coming from a mixer, coming from terrorist financing, and coming from ransomware payout addresses.”

  • Which government agencies use Chainalysis software?
    The government agencies using Chainalysis software include HSI, FBI and IRS (they “seem to have the most licenses, or are, at least, the most active in using our software, since their names come up constantly.”) In addition, “ATF, DEA, SEC, Secret Service, CIA (through In Q Tel), and most of the other federal law enforcement agencies are running the software. Only really large police departments are running the software (it isn’t cheap) like NYPD. Some district attorney offices have software licenses tooץ RCMP uses the software too. And Europol. The national police (NCA) in the UK, as well.”

  • What cryptocurrency does the whistleblower recommend for privacy?
    Monero

  • What advice does the whistleblower give for preserving anonymity when using Bitcoin?
    Avoid mobile wallets, look into Wasabi/Coinjoin and similar efforts, run a VPN/tor at all times

1 Like
  1. Stolen funds (like from a hacking type incident), coming from a dnm, coming from a mixer, coming from terrorist financing, and coming from ransomware payout addresses.

  2. HSI,FBI,IRS,ATF,DEA,SEC,Secret Service,NYPD,RCMO,Europol,NCA

3.Monero

4.Mobile phones

1 Like
  1. What are the five most likely causes for a Bitcoin transaction being marked as ‘suspicious’?
    1. Being stolen funds (like from a hacking type incident),
    2. coming from a dnm,
    3. coming from a mixer,
    4. coming from terrorist financing,
    5. and coming from ransomware payout addresses.
  2. Which government agencies use Chainalysis software?
    1. HSI, FBI, IRS, ATF, DEA, SEC, Secret Service, CIA, and most of the other federal law enforcement agencies. And NYPD, RCMP, Europol, national police (NCA) in the UK.
  3. What cryptocurrency does the whistleblower recommend for privacy?
    • Monero
  4. What advice does the whistleblower give for preserving anonymity when using Bitcoin?
    • Use VPN at all times, no mobile wallets, and look into coinjoin and wasabi type wallets.
1 Like

1- From stolen funds (like from a hacking type incident), coming from a dnm, coming from a mixer, coming from terrorist financing, and coming from ransomware payout addresses

2- HSI, FBI, IRS, HSI, FBI, IRS RCMP, Europol. The national police (NCA) in the UK

3- Monero

4- Don’t use mobile wallets that don’t incorporate privacy measures and use Wasabi/Coinjoin.

1 Like
  1. What are the five most likely causes for a Bitcoin transaction being marked as ‘suspicious’?
    Transactions involving stolen funds (from hacking incidents), dark net markets, funds coming from a mixer, from ransomware payout addresses and coming from terrorist financing.

  2. Which government agencies use Chainalysis software?
    HSI, IRS and FBI. Also the CIA, ATF, DEA, SEC. Big police departments (like NYCPD), European security agency (europol), UK’s NCA.

  3. What cryptocurrency does the whistleblower recommend for privacy?
    Monero.

  4. What advice does the whistleblower give for preserving anonymity when using Bitcoin?
    Using the Wasabi wallet, use CoinJoin and avoid mobile wallets. It also recommends using a VPN/tor.

1 Like