Study: Exchanges Accepted $1.3 Billion in Bitcoin Stemming from ‘High-Risk Addresses’ | Bitcoin News

Study: Exchanges Accepted $1.3 Billion in Bitcoin Stemming from 'High-Risk Addresses' | Bitcoin News

Study: Exchanges Accepted $1.3 Billion in Bitcoin Stemming from 'High-Risk Addresses'

A recently published report from the research and analysis firm Peckshield indicates that during the last two quarters of 2020, cryptocurrency exchanges accepted 147,000 BTC ($1.3 billion) from high-risk addresses.

During the last few years, blockchain research and surveillance firms have been classifying “risk levels” to specific transactions stemming from suspicious addresses and wallets. For instance, certain bitcoin addresses could be on a country’s sanctions list, used on a darknet marketplace, siphoned from an exchange breach, or used in any type of criminal activity.

According to a report from the Chinese crypto analytics company, Peckshield, global exchanges allowed deposits of up to 147,000 BTC ($1.3 billion) from high-risk addresses in the first half of 2020.

The top ten crypto exchanges who accepted funds from suspicious addresses include Huobi, Binance, Okex, Zb exchange, Gate.io, Bitmex, Luno, Huobtc, Bithumb, and Coinbase. The study indicated that the top three trading platforms represented more than 60% of the aggregate total.

Study: Exchanges Accepted $1.3 Billion in Bitcoin Stemming from 'High-Risk Addresses'

As far as withdrawals to suspicious addresses are concerned Binance, Huobi, Kraken and Luno were the leaders in H1 2020. Peckshield’s high-risk address list included extremely active gambling addresses, darknet use, scams, and exchange thefts.

According to Peckshield it also monitors a number of bitcoin mixing applications and exchanges that allow swaps without know-your-customer (KYC) rules. The report notes that it has monitored roughly $1.59 billion worth of digital assets.

Peckshield notes that some exchanges have “compliance issues” and findings say cryptocurrency tumblers make investigations more difficult. The blockchain research and analysis firm also discuss mixing tools like Wasabi, Samourai, and others.

Study: Exchanges Accepted $1.3 Billion in Bitcoin Stemming from 'High-Risk Addresses'

Peckshield also contributes data to Bituniverse by bolstering the firm’s Exchange Transparent Balance Rank (ETBR). The ETBR data from Bituniverse stems from onchain exchange balances recorded by Etherscan and Peckshield. In the report discussing the 147,000 BTC deposits from suspicious addresses, Peckshield also discusses registration-free digital currency swapping services.

The report’s findings also note that the movement of alleged illicit addresses represented a total of 13,927 transactions. Peckshield is one of many blockchain surveillance companies reporting on these types of high-risk addresses.

On May 15, news.Bitcoin.com reported on 20 blockchain surveillance firms that investigate the same types of data Peckshield collects. However, news.Bitcoin.com found some significant inaccuracies when our newsdesk leveraged the Bitrank application.

On that day our newsdesk copied and pasted a tainted address, which was flagged by law enforcement and stems from the Plustoken scam and entered it into the Bitrank application. Unfortunately, Bitrank’s platform gave the address a “Risk Score of 52” or “acceptable,” even though it was used in the Plustoken scam.

This means the accuracy of Peckshield’s data and the many other blockchain analysis firms may not be so accurate.

What do you think about the 147,000 BTC ($1.3 billion) allegedly accepted from high-risk addresses? Let us know what you think about this subject in the comments below.

Binance, Bitcoin Addresses, Bithumb, BitMex, Bitrank, BTC, Coinbase, Cryptocurrency, darknet use, exchange thefts, gambling addresses, H1 2020, high-risk addresses, Huobi, Huobtc, Kraken, KYC rules, luno, Okex, Peckshield, report, Scams, study

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Source: www.americancryptoassociation.com


BCH Backer Claims Bitcoin Wallet Double-Spend Issue Hasn’t Been Fixed

BCH Backer Claims Bitcoin Wallet Double-Spend Issue Hasn’t Been Fixed

On July 2, crypto security firm ZenGo identified a double-spend exploit targeting several popular Bitcoin (BTC) wallets, dubbed ‘BigSpender’

Of nine cryptocurrency wallets tested by ZenGo, BRD, Ledger Live, and Edge were found to have been vulnerable to the attack. The three companies updated their products after ZenGo notified them of the threat, however the firm warned that “millions” of crypto users may have been exposed to the exploit prior to its identification.

Despite the wallets’ move to protect against BigSpender, Bitcoin Cash (BCH) proponent Hayden Otto claims the vulnerability is inherent to Bitcoin “by design” and can still be exploited.

BigSpender was discovered through ZenGo’s ongoing research into Bitcoin’s ‘Replace-by-Fee’ (RBF) feature.

According to the security firm, “RBF is a standard method to allow users to ‘undo’ a yet to be confirmed transaction, by sending another transaction spending the same coins (but possibly different destination) with a higher fee”.

BigSpender is not the first time an exploit has targeted RBF vulnerabilities to execute a double-spend attack, with a similar technique being notoriously outlined in a video published by Otto in December that quickly went viral. The exploit is only possible with zero confirmations.

Speaking to Cointelegraph, Otto stated that RBF attack’s are “particularly concerning for BTC-accepting merchants who could have easily handed over goods to a customer who then reversed their BTC transaction upon leaving the store.”

“The technique is facilitated by RBF (replace by fee), a so-called ‘feature’ added at the protocol level by the Bitcoin Core developers.The issue exists if you use BTC. Wallet software can only make some trade off, which results in a worse BTC user experience, in order to try to protect BTC users.”

The BCH proponent described the exploit as “an issue with BTC itself,” adding that it has “nothing to do with the various wallet software”.

However, not everyone is convinced that BigSpender comprises a grave threat to Bitcoin, with the affected wallet providers challenging the language employed by ZenGo’s researchers.

Speaking to Forbes: Ledger asserted: “There is no actual double-spend being performed. The user funds stay safe. Nevertheless, the display of received transactions could be misleading.”

This is of course, what Otto exploited: getting merchants to hand over the goods before the funds were transferred due to a “misleading” display. However, merchants who wait for transactions to be confirmed before sending goods do not risk being affected.

ZenGo has released a free open-source tool that allows wallet providers to test their products and secure against the BigSpender vulnerability. The firm noted that not all of the wallets affected by the exploit have implemented upgrades

Source: www.bit-cointalk.com


BCH Backer Claims Bitcoin Wallet Double-Spend Issue Hasn’t Been Fixed

Chainalysis Says Bitcoin Scammed From Twitter Users Is ‘On the Move’

The defrauded bitcoin amassed during Wednesday’s monumental Twitter hack is already “on the move,” according to cryptocurrency tracing firm Chainalysis.

  • Chainalysis Says Bitcoin Scammed From Twitter Users Is ‘On the Move’
  • Chainalysis Says Bitcoin Scammed From Twitter Users Is ‘On the Move’
  • Chainalysis Says Bitcoin Scammed From Twitter Users Is ‘On the Move’
  • Chainalysis Says Bitcoin Scammed From Twitter Users Is ‘On the Move’

Source: finance.yahoo.com

Author: Danny Nelson


Study: Exchanges Accepted $1.3 Billion in Bitcoin Stemming from 'High-Risk Addresses' | Bitcoin News


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