Chainalysis, the blockchain data platform, today announced thatthe Bank of New York Mellon Corporation(“BNY Mellon”), the world’s largest asset servicer, will be the first Global Systemically Important Bank with plans to utilize Chainalysis’s compliance software as part of their risk management program. This integration will form a component of BNY Mellon’s strategy to develop cryptocurrency services for its clients.
Asannouncedby BNY Mellon in February 2021, the firm is building theindustry’s first multi-asset digital custody and administration platform for traditional and digital assets.
NFT traders made nearly $8.9 million USD in 2021 using an illegal activity called “wash trading” to artificially boost the value of their assets.
A new report by blockchain data platform Chainalysis revealed that some NFT traders are “making a killing” with wash trading, where the seller is on both sides of the NFT trade, leading to misleading inflation in the asset’s value. According to the report, wash trading is usually of concern with cryptocurrency exchanges, where trade volumes are faked to appear larger.
“In the case of NFT wash trading, the goal would be to make one’s NFT appear more valuable than it really is by ‘selling it’ to a new wallet the original owner also controls,” Chainalysis said.
The platform tracked NFT washing by analyzing sales of NFTs to addressed that were funded in some way by the selling address.
Russian invasion of Ukraine surpasses its first month.
“Those donations stand not just as an example of the community’s generosity, but also of cryptocurrency’s utility as a cross-border value transfer mechanism in a time of emergency. We have seen reports that the government has used the donated crypto to buy supplies, including gas, food, and military equipment.”
Both Russia and Ukraine are countries with very high levels of grassroots crypto-adoption, according to Grauer, with Ukraine ranking fourth in the world in the firm’s Global Crypto Adoption Index 2021.
“In the early days of the invasion, many suggested that cryptocurrency may be a means for Russians to avoid the impact of sanctions.
NFT wash traders made 830 sales to addresses that were self-financed.
“Using blockchain analysis, we identified 262 users who have sold an NFT to a self-financed address more than 25 times,” the report said. “While we can’t be 100% sure that all instances of NFT sales to self-financed wallets are intended for wash trading, the 25-transaction threshold gives us a higher degree of confidence that these users are habitual wash traders.”
While not every wash trader is successful because of gas fees associated with transactions, Chainalysis identified 110 profitable wash traders who have collectively made nearly $8.9 million USD — likely from victims who were unaware that the NFT they purchased had been artificially inflated in value.
The report was a preview of Chainalysis’ 2022 Crypto Crime Report, set to release this month.
Conti, including the group’s internal chat logs, source code, and more. The US and its allies must stay on high alert for possible retaliatory cyberattacks from Russian cybercriminal groups like Conti, as President Joe Biden recently warned,” said Grauer.
Russian cybercrime: Darknet, money laundering, ransomware
Russian cybercriminals were very active prior to the invasion, with the majority of ransomware revenues being made by Russia-affiliated cybercriminals, Grauer told Al Arabiya English.
“We have also identified money laundering operations concentrating in Moscow City, specifically a tower called Federation Tower.
The Chainalysis risk management software suite includes ChainalysisKYT(Know Your Transaction),Reactor, andKryptos. Chainalysis KYT performs continuous, real-time transaction monitoring for all cryptocurrency assets to detect patterns of high-risk activity.
Chainalysis Reactor, the investigative tool, provides deeper due diligence into suspicious activity. Chainalysis Kryptos offers high-level insight into cryptocurrency services including transaction volumes, counterparties, and benchmarking, so that financial institutions can develop effective compliance frameworks.
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By now, you’ve probably heard a lot about cryptocurrencies and their mainstream growth potential. Unfortunately, a rapidly growing ecosystem can mean an increasing number of bad actors trying to take advantage of it. At Chainalysis, we believe in building trust between the key players in this space – law enforcement, regulators, cryptocurrency businesses and financial institutions – so the industry can continue to grow.
Chainalysis powers compliance, regulatory, and investigative software that detect and prevent activities on the blockchain like money laundering, terrorist financing, child exploitation, ransomware, and more.
You may have heard about our role in solving the Twitter hack, assisting in counter-terrorism financing efforts, or taking down the largest child exploitive material website in the world.
The US and its allies are planning to impose new sanctions on Russian supply chains, Deputy US Treasury Secretary Wally Adeyemo said, according to a Reuters report.
Conti declared loyalty to Russian government
Conti, the most active ransomware group of 2021, according to Chainalysis, declared its loyalty to the Russian government on the second day of the Ukraine invasion, promising to launch cyberattacks against anyone who moves against Russia.
“The Conti Team is officially announcing a full support of Russian government.
OTC) desks, Chainalysis Head of Research Kim Grauer told Al Arabiya English. OTC Desk acts as a dealer for anybody looking to trade a given asset and are generally used when a given trade would not be possible on exchanges.
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“While spikes in this activity are common, Russian whale transfers hit its highest levels in roughly eight months during the week of February 28, soon after the invasion, reaching $26.5 million,” she said.
“On-chain activity alone can’t tell us if these transfers constitute sanctions evasion, as we don’t know if the whale wallets are controlled by sanctioned individuals and entities.
Chainalysis is the blockchain data platform. We provide data, software, services, and research to government agencies, exchanges, financial institutions, and insurance and cybersecurity companies in over 60 countries. Our data powers investigation, compliance, and market intelligence software that has been used to solve some of the world’s most high-profile criminal cases and grow consumer access to cryptocurrency safely.
Backed by Accel, Addition, Benchmark, Coatue, Paradigm, Ribbit, and other leading firms in venture capital, Chainalysis builds trust in blockchains to promote more financial freedom with less risk.