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Top 3 High Risk Addresses of 2018

Dec 31, 2018

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Recognized as a global leader in RegTech for blockchain, Coinfirm serves as a foundation for the safe adoption and use of blockchain. The Coinfirm AML/CTF Platform uses proprietary algorithms and big data analysis to provide structured, actionable data that solves compliance and transaction risk issues in blockchain and cryptocurrencies. The blockchain agnostic platform is currently used by anyone ranging from major financial institutions to exchanges. In addition, Coinfirm develops dedicated blockchain solutions such as the data provenance platform Trudatum that was recently integrated by the largest bank in CE.

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In this special edition of High Risk Addresses of the Month we chose to create an annual list for 2018 and highlight a few addresses that over the year have acquired large amounts of cryptocurrency through nefarious actions such as ransomware, scams, hacks and other types of fraud. By making these addresses publicly known and further integrating the Coinfirm AML Platform and AMLT Network, we can help make the cryptocurrency economy safer, more transparent, and grow.

These examples greatly illustrate, respectively: an exit scam, a phishing/impostering scam and a hack.

1. Bitconnect

The infamous crypto Ponzi scheme made its exit in January of 2018, starting off the year with a huge blast. On January 17th the Bitconnect site closed down its exchange and “lending” service, rendering all of their tokens virtually useless. What followed was a huge price shakeup, as the BCC coin went down by more than 90% in one day as the company owners disappeared with more than 2.5 billion dollars. The shutdown was allegedly performed right after the creators receiving cease and desists orders from Texas and North Carolina regulators.

Below you can find a Coinfirm AML Risk Report for one of the Bitconnect related addresses. As the funds were repeatedly mixed, there are a lot of “hoop” addresses left, all with their respective and well-deserved high C-scores:

2. Seele ICO fake private sale

In February of 2018, the scammers were able to fake a private sale of a token that was supposed to be airdropped to related community. By posing as one of Seele’s employees, they invited them to the ICO, offering multiple bonuses in return for the provided Ethereum. The imposters ran off with nearly $1.8 mln worth of Ether (valued at February’s rate). The ICO itself has suffered dramatically because of that, with many accusations of an inside job flying around.

As seen below, the Risk Report for the fake private sale address is considered high risk:

3. Pundi X hack

As for one of the biggest hacks of the year, the exchange Coinrail was breached in June, losing nearly $40 million worth of various cryptocurrencies/tokens. According to the statement, that the exchange has put out, most of the funds stolen were ERC20 tokens (including DENT, PundiX and ATX). A large part of the funds were instantly transferred to IDEX (a decentralized exchange) and liquidated. Fortunately some teams were able to support with recovering a part of the stolen funds, that includes the Jibrel Network freezing the tokens on the dex contract.

The address that we have generated the AML Risk Report for was the one that the tokens went to directly from the hack. Even though a lot of time has passed, the hackers have still left a lot of funds untouched:

By allowing the market to easily and instantly submit data related to such actions and then integrating valid data into the Coinfirm AML Platform used by well over 100 entities related to crypto, the AMLT Network gives a new layer of transparency and security for the economy as a whole. To become an AMLT Network and earn AMLT tokens for providing legitimate data make sure to begin the process through our website

If you're interested in partnering with Coinfirm or becoming an AMLT Network Member then contact us!

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The AMLT Team