During the recent months, an increasing number of trading platforms are stepping up their AML monitoring capabilities, introducing AML features, and starting to freeze suspicious fund sources.
As a VASP, one of your concerns is to avoid that one day hackers or dark web users transfer funds to your company’s trading platform, that might even make addresses within your own platform be flagged or blocked as a suspicious source of funds by large organizations. It might also happen that your company might have unawarely helped forward funds in the past, associated with illicit activities, being now accountable for the trouble.
In a follow up to the case about the malicious paper wallet address generators published by CYBAVO, our company assisted tracking the flow of funds stolen from a user by such methodology. The user deposited funds to a maliciously generated paper wallet with address 1PAD114RCjcMcfBHzCQEBe7BvzL2J9FpiB, just to discover that those funds were transferred out of the wallet, swapped to different currencies and finally deposited into a Crypto.com account, being this company unaware of such activity.
In our update scheduled for next Wednesday, CYBAVO will launch an AML block list detection feature for source addresses, to detect deposits coming from addresses flagged as suspicious or crime-related. With this update, any crypto deposit, withdrawal, batch or vault wallet operation with a source address flagged as crime-related, or included in a block list, will be halted by CYBAVO VAULT and the system will generate a notification for the operators for them to decide how to proceed. This way, the risk of unawarely accepting crime-related funds will be removed.
Our AML address block list feature gathers the most up to date intelligence information from different sources such as OFAC, FBI and other intelligence partners, to detect addresses related to malware, mining software, ransomware, the dark web, money laundering and other fraudulent activities. This feature will help your company to have a deeper understanding of the funds source, and make an informed evaluation of your users’ risk ratings.
Get in touch with us today, and learn more about how CYBAVO can help your company to be compliant.