Market Overview

New Q2 2018 Report Reveals Dramatic Increase in Crypto Theft and Corresponding Three-fold Rise in Cryptocurrency Money Laundering


CipherTrace launches cryptocurrency Anti-Money Laundering compliance
solution as cryptocurrency AML regulation grows globally

New research released today in the CipherTrace 2018 Q2 Cryptocurrency
Anti-Money Laundering Report finds that three times more cryptocurrency
was stolen from exchanges in the first half of 2018 than in all of 2017.
The report also explains why Cyber extortionists, dark markets and
ransomware perpetrators prefer bitcoin for their cryptocurrency
payments. Furthermore, these dirty funds all need to be "laundered,"
which results in a multi-billion-dollar and growing cryptocurrency money
laundering problem that is attracting the attention of regulators

This press release features multimedia. View the full release here:

CipherTrace Cryptocurrency AML Compliance Solution (Graphic: Business Wire)

CipherTrace Cryptocurrency AML Compliance Solution (Graphic: Business Wire)

research report
, which looks at the state of the cryptocurrency
Anti-Money Laundering (AML) market, provides insights into the pending
global cooperation and crackdown by the G20 international 37-nation
financial crime-fighting Financial Action Task Force (FATF). The current
rules, which seem strict on the surface, call for exchanges to: be
registered or licensed, verify customers' identities, prevent money
laundering, and report suspicious trading and transactions.
Unfortunately, they are voluntary. But according to Reuters, the FATF is
currently discussing making crypto exchange rules binding. Additional
global enforcement action is also expected from US Financial Crimes
Enforcement Network (FinCEN), and it will likely target money laundering
services, crypto-to-crypto exchanges and privacy coins.

"Until now, the lack of regulatory guidance has hindered the broader
adoption of cryptocurrencies. Now we are seeing the big guys coming
together asking for cryptocurrency anti-money laundering regulation—it
is inevitable, it will be unified, and it will be global. There will be
little room for privacy coins without AML or mixers in these Know Your
Customer and Anti-Money Laundering regulated regimes. This will also be
a wake-up call for virtual currency exchanges and financial
institutions, exposing them to the risk of facing stiff penalties,"
commented Dave Jevans, CEO, CipherTrace and co-chair of the
Cryptocurrency Working Group at the

New Sophisticated Technology Tracks Cryptocurrency Through the
Blockchain Ecosystem

These developments are driving a significant and increased demand for
crypto AML intelligence. In response, today CipherTrace is also
launching the general availability of its new Cryptocurrency
AML Compliance Solution
to help exchanges, hedge funds, ICOs, money
transfer agents and banks safely participate in crypto asset markets
while minimizing compliance efforts and costs. This fast and powerful
tool—which can handle massive numbers of transactions and value—traces
the flow of funds through the crypto ecosystem to find the "tainted

  • CipherTrace's superior cryptocurrency intelligence is a result of
    advanced cryptocurrency intelligence gathering techniques and machine
    learning algorithms. These are guided by a deep understanding of
    eCrime and blockchain threat vectors applied to vast amounts of
    private and open source data. The CipherTrace AML solution features
    the first Crypto Intelligence Sharing Network for the best attribution
    on the market with 1.5 to 2 million new attribution data points added
    per week.
  • CipherTrace technology calculates risk scores for transactions based
    on whether the funds have traveled through illegal dark markets, money
    mixers, gambling sites or are associated with known criminals. This
    transaction risk rating also simplifies compliance efforts by rapidly
    identifying and highlighting risky transactions for further scrutiny
    or action.
  • The industry-leading CipherTrace API provides near real-time
    transaction risk scoring for exchanges, financial institutions and
    other high-volume users. The API also can trigger deeper analysis
    required for Suspicious Activity Reports (SARs). Bulk upload and
    analysis capabilities further speed up complex investigations and
    larger audits.
  • With CipherTrace's intuitive user interface (UI), non-technical users
    can perform analysis, which starts with a visual representation of the
    transaction. Once a transaction is identified as high-risk or
    non-compliant, the user can click to drill down and look for
    relationships, or search back through related transactions or multiple
    parts of a transaction and see any useful patterns.
  • In addition, users can step forward and backward in the transaction
    history of suspicious transactions. The platform's UI further makes it
    easy to perform deeper inspection and analysis of suspicious
    transactions, trace flows and link blockchain events.

CipherTrace's cryptocurrency intelligence, bitcoin forensics and crypto
transaction risk score help to assure compliance and build trust in the
blockchain economy for all law-abiding participants.

"Already, clients in crypto exchanges, hedge funds and law enforcement
are seeing massive improvements in the time it takes them to
investigate, monitor and report on AML violations," said Stephen Ryan,
COO, CipherTrace.

"Many of these RegTech and cryptocurrency technologies—which were once
thought experimental or just for cryptos—are fast becoming mainstream
compliance expectations among regulators. Cryptocurrency exchanges have
invested extensively in legal services and detailed AML programs. Now,
they must back this commitment by investing in compliance infrastructure
and giving their compliance professionals the resources and tools they
need to get the job done," said Joe Ciccolo, CAMS, CFE, AMLCA,
President, BitAML, Inc.

For more information:

About CipherTrace

CipherTrace develops blockchain security, AML compliance and enforcement
solutions that make cryptocurrencies, crypto tokens and enterprise
private blockchains safe and secure. CipherTrace was founded in 2015 in
California USA. CipherTrace operates globally and has top
cryptocurrency, payments and security executives and programmers on its
team. Founded by experienced Silicon Valley entrepreneurs in 2015,
CipherTrace was funded by DHS Science and Technology and DARPA to
develop their cryptocurrency tracing capabilities. The team has deep
expertise in cyber security, payment systems, banking, encryption,
bitcoin mining and were the early participants in the bitcoin community.
CipherTrace has the backing of leading Silicon Valley venture capital

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