Chainalysis Targets Suspected Illegal Bitcoin Activities

Chainalysis has started publishing reports on firms suspected of illegal cryptocurrency activities, focusing on Black Host, FutureNet, and Farhad.

Analytical firm Chainalysis has commenced the publication of regular reports on companies suspected of engaging in illegal activities involving cryptocurrencies. The initial review focuses on the hosting provider Black Host, the Ponzi scheme FutureNet, and the bitcoin exchange Farhad.

We’re excited to kick off our new series: Chainalysis Crypto Crime Intelligence Briefs! Each brief profiles a service or group transacting with cryptocurrency that could be relevant for law enforcement, regulators, and compliance pros. Learn more here! https://t.co/eFmX0lBitI

— Chainalysis (@chainalysis) May 4, 2020

Three new Crypto Crime Intelligence reports shed light on the mechanisms and routes used for illegal transactions in the crypto space. The analysis is complemented by charts generated using the Chainalysis Reactor tool.

The firm emphasized that it is not actively investigating any of the companies mentioned. The information may be of interest to law enforcement agencies, regulators, cybersecurity specialists, and compliance professionals.

First on the list is the so-called “bulletproof” hosting provider Black Host, which also offers SIM cards, VPN servers, email, and privacy protection for clients.

The service further enhances protection by supporting cryptocurrencies. Chainalysis specialists discovered that in May 2018, the North Korean government hacker group Lazarus Group used Black Host’s services.

The second report focuses on the activities of the Iranian bitcoin exchange Farhad. Despite the ban on cryptocurrency trading in the country, the platform, which supports the local rial, ruble, and US dollars via WebMoney, a social platform for traders, and educational projects, continues to operate.

The analytical startup traced connections between 20,000 BTC addresses of the exchange’s clients and suspicious organizations, gambling sites, and p2p platforms. Between 2014 and 2017, the platform was used to convert bitcoins into rials by an Iranian resident linked to transactions conducted through the SamSam ransomware program.

The final Chainalysis report highlights the Ponzi scheme FutureNet in Poland, which created a shell company infrastructure to give the appearance of legitimacy to its operations.

In April, the analytical startup revealed that by the end of the previous year, the volume of bitcoin and Ethereum payments to providers of “adult” content involving minors amounted to $930,000.

Forklog recently released a special report on Chainalysis’s activities and the mixed reactions it provokes within the crypto community.

The All-Seeing Eye of Chainalysis: How Bitcoins Become Tainted and What to Do About It

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