Project Goal: Our goal is to mark as many addresses as possible that are involved in illegal activity and track their transfers to all other addresses in the TRON blockchain.
Project Value: Prevent any fraudulent activities and help users avoid having their funds blocked.
Smart Contract links: We do not have any deployed contracts, but we are planning to make a special smart contract with all illegal addresses for use in dex exchanges or for any other users.
Project Milestones:
Collection of addresses markup from open sources, darknet, forums and etc
Improvements to address clustering and risk distribution algorithms
External API integrations for collecting markup from partners (exchanges, explorers, goverments, ivestigation teams)
Improvement of the visualization graph to track the transfers of funds in the TRON blockchain.
Welcome to the Hackathon of season 7, I am really liking the fact of how you’re emphasizing is on anti money laundering as it is showing that you taking security seriously, please tell me what are the sources would you be going to use for the collecting of addresses, thank you
Welcome to hackathon season 7. It is interesting to know that your project is focusing on exposing fraud in other to help people not to be victim of the same fraud. I am interested to know what happened after you mark and trace all the addresses used in committing the fraud. Are you going to prosecute the people involved in that crime?
Greetings!
Yes, we are engaged in investigations of cases of stolen funds (usually from 1 million dollars). We are cooperating with the police of different countries and exchanges such as binance, coinbase, etc. and can block/unblock frozen funds on exchanges or help in the investigation.
We will also soon provide anyone with the opportunity to report a specific address with evidence of fraud and, if these funds end up on exchanges, pass this information on to them.
Welcome to Hackathon Season 7, after a careful read I can only deduce that this is bordering around investigations within the cryptocurrency industry, specifically targeting illegal activities on the TRON blockchain. How will you handle privacy issues related to marking addresses, especially concerning legitimate users who may inadvertently get flagged?
After reading your project goal and value I will like to know the criteria that will be used in identifying illegal address activity, and also if there are plans in hand with law enforcement agencies.
Good afternoon and thank you for the interesting question!
There are no clear rules in the industry now, but the generally accepted standards are as follows: if your address was incorrectly marked or was somehow connected with illegal activity (for example, you received money from a p2p exchanger and did not know that they were illegal), then you can challenge this decision by attaching the necessary evidence of your innocence.
The exchanges can initially block your funds (they also use similar AML services), but in any case they will begin its internal investigation and we have had several cases when we helped to unblock funds and proof that the person in not guilty.
In any case, before accepting funds to your addresses, it is important to check the addresses from which you plan to receive them in order to avoid such cases. For this, among other things, you can use our solution. In future we will make Telegram bot for fast address / transactions checking.
Oh yeah right, you pretty much answered my question, I sincerely think building relationships with law enforcement agencies and major crypto exchanges will strengthen the credibility of your flagged address database.
I’m just curious, how long does it typically take to resolve disputes, and what steps are involved in verifying a user’s claim of innocence? Is there a fast-track option for urgent cases where significant funds are involved?
GM GM MatchSystem, welcome to this session. Man you got really cool project. Which I having fun looking checking and testing it. But I got lots of observations, questions and contribution to made. Long one tho.
Watched your YouTube video and it clear and detailed.
I love the Analyser. At first I thought it just a mere Blockchain explorer.
I actually login to test it using my own tron address.
Not just limited to Tron, also BTC and Eth chains too.
N/B it is compatible with desktop .
Typically, the process of address risk assessment is as follows:
We find or are sent a report on a specific address, we check the evidence and mark it as risky
For example, this address → Match Systems
was noticed trading drugs in a specialized telegram channel. It is assigned a risk of 100% and in the future, if it transfers funds to another address, it is also marked as suspicious (a certain percentage of risk is assigned). If the amount of funds received at your address exceeds a certain percentage by category, it can be blocked on the exchange.
For example, 50% of the funds received at your address were related to Drugs.
We also cooperate with law enforcement agencies of certain countries and, in general, at their request, we can conduct an investigation or pass on information about illegal activities to them. But usually this refers to big organized crime groups.
We also have algorithms for spreading the risk to other addresses in the blockchain and combining addresses into a common cluster (if they spent funds together, etc.). Each address has its own risk and details of the funds received, broken down into different categories.
The main criteria used to assess the risk of an address/transaction is how much of the funds in it are associated with a dangerous category such as drugs, scam, etc.
We have different categories for this purposes:
Usually, to prove your innocence, it is enough to provide information about why you were transferred funds and where from (with screenshots, the KYS procedure, etc.). If you really received funds by mistake or did not know that they were involved in illegal activity, the exchange may meet you halfway and unblock them.
The larger the amount, the more attention it receives and, accordingly, the process can be accelerated
So in general your address is fine, there is 3% of “Laundering of money” category, but is it ok
Yeah, got it, thx, will fix it
We spend some time checking all reports and evidence to ensure that we don’t accidentally mark up innocent addresses.
In the future, we hope to improve the incident collection system, including through more familiar interfaces such as a telegram bot or on partners websites.
Yes, this is an interesting type of fraud, we call them dust-addresses.
We have a separate heuristic that detects such addresses (they use tron-gas-stations and transfers funds between themselves thus we could cluster them), but usually they almost do not spread the “risk” when transferring funds (due to too small values).
They are interesting to track only when large sums are accidentally transferred there.
On the Risk score Rating:-
0-25% Good
26-74% Average
75-100% Red zone. ( Hope that is correct?)
Oh lord, money laundering?
This happened to me my first wallet address.
Please how the data collection made?
Because I as ask this, you know of P2P trading merchant.
Which like address that receive transaction mostly by sellers. So the address can be seen as Money laundering?
How will Analyzer handles tracking of Dex and cex wallet address?
Welcome to hackaTron S7. I like what you’re building to the entire crypto communities. Your video made exploring your project more easier but I got this question to ask. While testing your project, I found where a wallet was marked as high risk country and I will like to know what metrics you use to determine that. Secondly, what mechanisms have you put in place to prevent the erroneous marking of addresses that may not be involved in illegal activities as unsafe wallets?
Yeap, thats correct
Each category have it own risk → Match Systems
Most likely, one of the addresses associated with money laundering made an exchange in a p2p exchanger and its risk was gradually transferred to different addresses
But since only 3% of all funds in your address are associated with this activity - this is not scary. More than 10% can be suspicious.
We analyze all internal and token transfers inside the smart contracts, but sometime ofc we can also miss something
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