On Wallet Scanning, Legal Asssistance, and some free tools
If your crypto assets have been stolen or if you believe you are aware of a crypto scam, or if you need help justifying the origin of your funds to your bank or financial institution, contact qualified lawyers at avroytech here
The Importance of Wallet Scanning and Legal Assistance in the Crypto Space
In the rapidly evolving world of blockchain and crypto assets, the old adage "knowledge is power" has never been more relevant. As we navigate this new frontier, the importance of understanding who we're dealing with - our counterparties - is paramount. This is where the practice of wallet scanning and the enlistment of legal help come into play.
What is Wallet Scanning?
Wallet scanning, a practice facilitated by tools such as AMLBot, breadcrumbs, and SmartTrust, allows us to delve into the history of, and see the risk associated with, a crypto wallet. They provides insights into past transactions, the entities it has interacted with, and the reputation of these entities. Those are powerful tool in the fight against money laundering and other illicit activities, as allows us to assess the risk associated with transacting with a particular wallet.
The transparency of blockchain transactions offer a unique opportunity to trace the movement of funds. This can be particularly useful in cases where individuals have been scammed or have had their crypto assets stolen. With the right expertise, it's often possible to track where the money has ended up. This is where the role of a lawyer becomes crucial.
Why scan?
To recover funds, prove the origin of your funds who understand who you are interacting with.
The need for such services is also becoming increasingly important as banks often express reluctance to accept money from the sale of crypto assets. This is largely due to a lack of in-house knowledge or expertise to fully ascertain the origin of funds.
Legal professionals with expertise in blockchain technology and crypto transactions can help format the data and outcomes of an investigation in a way that law enforcement, a compliance department, or the justice system can understand. They can also assist in launching a full-on investigation to -hopefully - recover funds and prosecute scammers and embezzlers.
It's not just about recovering lost funds. The changing landscape of Anti-Money Laundering (AML) regulations, particularly those related to digital assets, means that individuals and businesses need to be proactive in ensuring compliance. AML regulations are being modified to cover new areas of the financial system exposed to risky activity, with digital payment methods and cryptocurrency being prime examples.
In 2023, for instance, several jurisdictions are formulating more robust AML legislation. These amendments are centered around digital assets and businesses in that sector. For example, the EU is focusing on cryptocurrency sectors by requiring Virtual Asset Service Providers (VASPs) to implement AML/KYC procedures and prohibiting business to work with anonymous accounts or wallets above a certain threshold.
In the US, the Anti-Money Laundering Act, 2020 (AMLA) is filling gaps that allow nefarious actors to launder funds. VASPs are required to establish their client companies' rightful ultimate business owners (UBOs) and assess their risk profiles.
Given these developments, it's clear that the role of Customer Due Diligence (CDD) in AML and KYC compliance is more important than ever. CDD procedures help establish transparent customer-business relationships, allowing VASPs and businesses to know the customers they are dealing with, the risks the customers pose, and instances of criminal behavior during their relationship.
In conclusion, the use of wallet scanning tools and the enlistment of legal help are not just about protecting ourselves from potential risks. They are about fostering a safer and more transparent crypto ecosystem. They are about ensuring that the revolutionary potential of blockchain technology and cryptocurrencies is not undermined by illicit activities. They are about making sure that we, as participants in this new frontier, are not just spectators, but active contributors to its growth and development.
Free tools to scan wallets and see wallet connections
These resources will help you scan a wallet from time to time and to visualise the web of connections between wallets.
For any serious and in-depth onchain investigation, to justify the origin of your funds to your financial institution, or to get qualified help to recover your funds by going to the police and other law enforcement agencies, contact qualified lawyers at avroytech.
More free tools to stay safe and avoid losing your funds
While we are at it, here are some tips and tools on staying safe on the blockchain(s):
Use tools mentioned above to scan your counterparties, if you can. If you’re dealing with smar-contracts, read on
Use a hardware wallet for anything of value.
Instead of Metamask, use rabby.io. It will give you pre-sign check for error and risk and make the transaction “human readable” by showing your estimated balance change. And the speed at which they ship is unmatched.
Consider using harpie.io, the on-chain firewall, or forta, or Blockem, or nefture, or web3antivirus or all of them.
Periodically, check your transaction allowances with revoke.cash
Delegate authorisations to “less valuable” wallets, which can be software wallets for convenience.
With delegate.cash, if the assets support it
Or see if you can’t generate a zero-knowledge proof with simso.io to let another wallet prove that something is true
