That's the sad part. By not doing it themselves, they sell out their clients.
Chain Analysis works by the company keeping track of who can ID which addresses, so there is a huge network effect. The more companies work with one of them, the more intel they have to sell to others.
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Yeah, so if you were going to create a new service to compete with a neutral party like , how could you possibly have an edge over that? Why would an agency buy your service over theirs? Why even bother to sell your service for less than you pay your sales guy?
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He isn't suggesting an edge, he is suggesting doing your own taint analysis to segment off central tainting. Which service does Kraken use today?
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You need to have an edge to win contracts. Could be it's just way better pricing but on a vastly inferior product. Doesn't seem like the kind of trade law enforcement agencies would want to make.
We don't disclose our vendor relationships. We've built a lot of tools over 9 years
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Why do you need contracts? How is it not virtue-signaling for you to chastise your former employee while likely using his service and/or similar services just the same?
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I haven't chastised any former employees. Subscribing to a service out of a legal obligation is not the same as developing and selling that service yourself.
It makes much more sense for a neutral party to be selling this service than it does a full-KYC wallet/exchange.
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How so? As Leo describes, removing yourself from the profit aspect doesn't actually protect users data better, it centralizes it allowing better triangulation and taint of the entire chain.
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What are your actual legal obligations to taint and use blockchain taint as a business? Can you refer me to any documentation that shows this type of requirement?
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We don't have any obligations to taint any blockchains. Re: legal obligations -- everybody has to comply with OFAC.
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How does chainanalysis satisfy ofac? How hard is it to follow ofac yourself, isnt it just a blacklist?
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Tools like don't necessarily satisfy OFAC but they offer some protection. Yes, it's a blacklist but the list of addresses is constantly growing. Vendors who specialize at this tend to have better data, which can also mean fewer false positives.
Is there actual research and effort to assess false positives? Or do people mostly still get ousted, exit probed, and that's that?
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At Chainalysis? I don't know. At Kraken, yes. The quality/accuracy of our data is super important. We don't want want to unnecessarily turn clients away.
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