[2019-08-02]Elliptic Launches Data Set to Identify Crypto Money Laundering

[roosbit]

Cryptocurrency compliance company Elliptic has released the Elliptic Data Set, geared toward identifying cryptocurrency transactions associated with money laundering (AML). The development was announced in a press release shared with Cointelegraph on Aug. 2.

Making the crypto world more transparent
Having developed a data set of 200,000 Bitcoin (BTC) transactions with a total value of $6 billion,  Elliptic claims it to be the largest set of labeled transaction data publicly available in any digital currency in the world.

According to the announcement, the product is designed to help users more efficiently identify illicit transactions, as well as transactions associated with money laundering, sanctions violations or terrorist financing (CFT). At the same time, the product should reduce compliance costs and eventually eliminate criminal activity from cryptocurrencies.

Readmore https://cointelegraph.com/news/elliptic-launches-worlds-largest-data-set-to-identify-crypto-money-laundering

[joelsamuya]

What is clear to me here is that we already have technology in use to track and identify transactions that can possibly be smeared with money laundering or illegal transactions for that matter. Now, having said that, maybe those people and those governments who are still thinking that cryptocurrency is being utilized to hide illegal movements of money should start rethinking with that kind of understanding. In fact, I would say that it is now easier to track transactions done in cryptocurrency than those using the usual fiat money.

[buwaytress]

Bringing transparency to the world, haha. They have got some confidence to say that this alone will eventually eliminate money laundering and criminal activity from crypto.

Be interesting to get more details on their use of relational networks and fingerprinting, if any.

Who said all the FUD about crypto doesn't benefit crypto businesses, mm?

[malevolent]

So competitor of Chainalysis finally appeared?

No. There were already half a dozen companies offering services similar to those of Chainalysis 5 years ago, most just aren't as well-known by the general public. One company, Neutrino, has been acquired by Coinbase this year, as they don't really like if their users send/receive bitcoins to/from DNMs or gambling websites. Other known ones are Ciphertrace, Blockseer, Coinfirm, Ironnet and Scorechain, but there are more.

[bryant.coleman]

So competitor of Chainalysis finally appeared? But i bet they'll classify any transaction from mixers or use CoinJoin as Money Laundering because they can't de-anonymize it

What they could do are stripping little privacy of Bitcoiner have & annoy Bitcoiner who wish have some privacy, they can't stop money laundering & criminal activity just because they can track/follow money flow.

No matter how much they track or follow the coins, the identity of the user won't be revealed unless he links those coins to fiat cash or residential address. So unless you convert your coins to fiat currency or order some contraband using them after giving your residential address, there is nothing to worry about. Another thing is that tracking the coins takes a lot of time and effort and it is not viable to do this for a very large number of wallets. So unless you do some really suspicious transactions, they are not going to come after you.

BTW, I am of the opinion that we need to destroy any links mafias and criminal organizations are having with BTC. As per studies done by MIT and Circle, less than 2% of the Bitcoin transactions have any link with these activities. But still the authorities are using this small number to demonize the entire cryptocurrency user community.

[eaLiTy]

According to the announcement, the product is designed to help users more efficiently identify illicit transactions, as well as transactions associated with money laundering, sanctions violations or terrorist financing (CFT). At the same time, the product should reduce compliance costs and eventually eliminate criminal activity from cryptocurrencies.

It is a good initiative to reduce and track illegal activities in the market but i am not sure how they are planning to achieve those goals and identify whether a fund is used for illegal transactions or terrorist funding unless you identify the people behind those transactions, does that mean that all the KYC you fill up in exchanges and other platforms will reach them  . Criminal activities in the market will be eliminated as there is nothing you can hide from the blockchain.

[Carlton Banks]

I am of the opinion that we need to destroy any links mafias and criminal organizations are having with BTC. As per studies done by MIT and Circle, less than 2% of the Bitcoin transactions have any link with these activities.

organized crime is always, always at some level sanctioned and overseen by their native spy agency.

which makes your following comment.....

But still the authorities are using this small number to demonize the entire cryptocurrency user community.

.....naive.

Although law enforcement and financial regulators are not all part of organized crime, important members of in those organizations are, and help gangs and banks to legitimize profit from crimes.

Do you read newspapers? They're constantly full of stories about exactly that, and there's almost certainly plenty more that is never detected and thus never reported on.


So, appeals to "clean up" bitcoin are a bit of a joke, when you realize that the foxes are guarding the hen coop anyway. if bitcoin somehow eliminated (detectable) "bad" activity, corruption would enusre it continues in the banking system regardless

[hugeblack]

I don't know why when the government loses control of something, it starts creating fears about it and then creates central companies in an attempt to control it.
Even these companies are not authorized to judge the credibility of cryptocurrencies or not.
Fools are the ones who use BTC to launder money, most of the violations will be buying porn or trying to evade taxes.

How can 200,000 BTC change of more than 17 million?

[Schirer]

I would say that it is now easier to track transactions done in cryptocurrency than those using the usual fiat money.

Recently i have started to think also the same way.

I see only 2 ways which can't be tied to laundering - mixers and cash on hand .
Mixers itself could be a redflag for those algos and cash on hand is becoming more difficult because localbitcoins terminated that options.