A service that was being used by criminals to check whether their own bitcoin wallets were linked to criminal activity has been shut down.
A blockchain analytics tool that has allowed crypto launderers to test whether their funds would be identified as proceeds of crime by regulated exchanges has been shut down, according to media reports.
Known as Antinalysis, the service was launched on the dark web and enabled Bitcoin addresses to be checked for links to criminal activity.
“We’re seeing criminals start to fight back against blockchain analytics and this service is a first,” Dr Tom Robinson, chief scientist and founder at blockchain analytics firm Elliptic, told BBC.
Robinson discovered the website of Antinalysis and discussed the service in an Elliptic blog post last Friday (13 August). The post reportedly caught the attention of regulators, leading to the service being shut down.
Blockchain analytics tools are used to identify whether the funds originate from a wallet associated with ransomware or any other criminal activity by tracing a transaction back through the blockchain.
While helpful to conduct investigations involving crypto-related activities, money launderers have reportedly also been using such tools to determine whether they would be identified as criminals and reported to law enforcement prior to sending funds to a crypto exchange.
Antinalysis was developed by ‘Incognito’, which also runs Incognito Market, a platform for buying and selling controlled substances. The software runs on Tor, a network that allows users to browse the web anonymously and is commonly used to host darknet markets and other illicit services.
Each assessment report on Antinalysis reportedly cost roughly USD 3, with a minimum purchase of USD 30, while higher-priced plans went for USD 6,000 for 5,000 requests.
The launch of Antinalysis likely reflects the difficulties faced by the market and its vendors in cashing out their Bitcoin proceeds, Robinson said in his blog post last Friday.
“The tool represents a significant new capability for crypto launderers. They can now test their own laundering methods, be it the use of mixers or layering techniques, by screening their own bitcoin wallet, before taking the risk of making a deposit at an exchange or other service provider. Compliance professionals should be aware of this new tactic.”
Only eight hours after Robinson’s blog post, Antinalysis’ data sources were seized and its services suspended by one of its service providers, AMLBot, an anti-money laundering intelligence platform.
AMLBot had found that Antinalysis was built on its API, shut down the Antinalysis account, and notified law enforcement authorities of the addresses that had used the service to generate risk reports.
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