Etherscan Launches Address Fraud Monitoring and Blacklisting


Popular Ethereum (ETH) block explorer Etherscan has launched a machine-learning powered surveillance engine to flag ETH and wallets associated with illicit activity.

Wallets originating from illegal sources will now be blacklisted – allowing users to identify when the coins they receive have a checker history.

Etherscan Blacklist Illegal Source of Funds

Etherscan announced the ETHProtect detection system in a blog post on April 14.

ETHProtect will generate “daily user reports of suspicious fraudulent activity” which will be reviewed and verified by Etherscan security research analysts.

The detection system is designed to identify funds associated with hacking, fraud, phishing, exploits and other suspicious activity. The post states that ETHProtect browsing is never static; the engine continuously tracks and identifies every tainted address” in real-time.

The announcement also notes that previous experience has taught Etherscan that there is no “one-stop solution; it’s an ever-evolving game of cat-and-mouse with bad actors and their need to ‘launder’ tainted funds into fiat. “

User Can Track Blacklist Token Transfer History

If the user searches for a blacklisted wallet on Etherscan, the user will now find a red banner notifying them that the funds contained in the wallet have previously been linked to criminal activity.

Users can also check the transaction history of a particular blacklisted coin – allowing the user to determine when funds were moved through restricted channels, and since then the movement of that coin.

Wallet owners who believe they have been tagged incorrectly are encouraged to reach out to Etherscan directly.

Huobi intends to improve fraud detection

On April 13, Huobi Global announced the launch of the Star Atlantis on-chain forensic tool to improve its fraud identification process.

Huobi is named alongside Binance as the two exchanges for receiving the largest Bitcoin (BTC) stream from illicit sources.

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