{"id":40499,"date":"2021-04-09T17:45:44","date_gmt":"2021-04-09T14:45:44","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=40499"},"modified":"2025-08-30T14:21:29","modified_gmt":"2025-08-30T11:21:29","slug":"ciphertrace-to-help-defi-projects-comply-with-u-s-sanctions","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/ciphertrace-to-help-defi-projects-comply-with-u-s-sanctions\/","title":{"rendered":"CipherTrace to Help DeFi Projects Comply with U.S. Sanctions"},"content":{"rendered":"<p>CipherTrace <a href=\\\"https:\/\/ciphertrace.com\/ciphertrace-launches-defi-compli-a-compliance-oracle-solution-on-chainlink-to-enable-dexs-and-defi-protocols-to-abide-by-ofac-sanctions\/\\\" target=\\\"_blank\\\" rel=\\\"noreferrer noopener\\\">announced<\/a> the launch of a Chainlink-based solution that will enable decentralized exchanges and other DeFi projects to comply with the United States Office of Foreign Assets Control (OFAC) sanctions regime.<\/p>\n<p>\\n\\n<\/p>\n<p>To create the CipherTrace DeFi Compli tool, the firm launched a node on the Chainlink network to tap oracle data and facilitate integration of the solution with existing DeFi infrastructures.<\/p>\n<p>\\n\\n<\/p>\n<p>In a statement, CipherTrace noted that in 2020 <a href=\"https:\/\/forklog.com\/en\/news\/ciphertrace-puts-2020-losses-from-crypto-scams-and-hacks-at-1-9-billion\">half of crypto industry hacks were linked to DeFi projects<\/a>, and funds stolen from centralized exchanges were increasingly <a href=\"https:\/\/forklog.com\/en\/news\/hackers-used-uniswap-to-launder-150m-siphoned-from-kucoin\">laundered through decentralized platforms<\/a>, as in <a href=\"https:\/\/forklog.com\/en\/news\/analyst-estimates-kucoin-hack-damage-at-280-million\">the $280 million KuCoin incident<\/a>. Therefore the company expects regulators to pay more attention to sector players.<\/p>\n<p>\\n\\n<\/p>\n<p>Back in September last year, <span data-descr=\\\"U.S. Securities and Exchange Commission\\\" class=\\\"old_tooltip\\\">SEC<\/span> Valeri Shchepanik, head of the SEC&#8217;s Strategic Center for Digital Assets and Innovation, warned that entities enabling lending or borrowing money, earning interest, exchanging and opening positions fall under financial activity regulation, including AML\/CFT rules, the firm said.<\/p>\n<p>\\n\\n<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>&#8220;Shchepanik&#8217;s statements imply the inevitable application of sanctions, as well as AML\/CFT laws. It is time for DeFi projects to take steps to ensure compliance, or risks will arise,&#8221; said CipherTrace CEO Dave Jevans.<\/p>\n<\/blockquote>\n<p>\\n\\n<\/p>\n<p>According to him, one of the main current issues for DEXs should be preventing the <a href=\"https:\/\/forklog.com\/en\/news\/chainalysis-links-lazarus-to-kucoin-hack-worth-280m\">financing of the development of weapons of mass destruction<\/a>.<\/p>\n<p>\\n\\n<\/p>\n<p>Earlier, CipherTrace developed <a href=\"https:\/\/forklog.com\/en\/news\/ciphertrace-unveils-monero-transaction-tracing-tool\">a transaction-tracking tool<\/a> for the privacy-focused cryptocurrency Monero. The company <a href=\"https:\/\/forklog.com\/en\/news\/ciphertrace-files-two-patents-for-monero-transaction-tracing-technology\">filed patents<\/a> for the technologies created for this purpose.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>CipherTrace announced the launch of a Chainlink-based solution that will allow decentralized exchanges and other DeFi projects to comply with the United States Office of Foreign Assets Control (OFAC) sanctions regime.<\/p>\n","protected":false},"author":1,"featured_media":40500,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1292,1911,1093],"class_list":["post-40499","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-aml-kyc","tag-cipher-trace","tag-defi"],"aioseo_notices":[],"amp_enabled":true,"views":"13","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/40499","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=40499"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/40499\/revisions"}],"predecessor-version":[{"id":40501,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/40499\/revisions\/40501"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/40500"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=40499"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=40499"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=40499"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}