OFAC Seeks Bitcoin Monitoring – Bitcoin Magazine: Bitcoin News, Articles, Charts and Guides

The Office of Foreign Assets Control (OFAC), a financial intelligence and enforcement agency for the U.S. Treasury Department, has requested a second subscription to license, training, and support packages from blockchain analytics firm Chainalysis, according to a public procurement notice.

“OFAC needs a commercial web-based online blockchain tracing application tool to equip investigators in its Office of Global Targeting (OGT) to conduct virtual currency transactions, e.g. B. Bitcoin, to analyze and track to collect attribution information about involved parties that OGT may have on the [Specially Designated Nationals] List “, it says in the message. “This tool would specifically support the implementation of cyber sanctions carried out by OFAC.”

OFAC made a similar application on May 4, 2021. The Specially Designated Nationals (SDN) list includes parties that are sanctioned by the US for money laundering or terrorist financing from conducting financial transactions.

While Bitcoin can enable pseudonymous financial transactions, each transaction is recorded on a public and immutable digital ledger. This enables blockchain analytics firms like Chainalysis to uncover details about Bitcoin transactions, sometimes including the real identities behind them.

There are some layers of privacy that Bitcoin users use to better disguise these transactions, such as: B. Mixing coins and CoinJoin. But it appears that this latest subscription request is specifically targeting coin blending services like Wasabi Wallet.

“This license also includes Wasabi demixing services at no additional cost for OFAC and with no limit on the number of requests,” the statement said. “Chainalysis meets OFAC’s needs by effectively providing the following capabilities: address clustering; Transaction flow mapping and graphical representation; Wallet explorer; Analysis of user behavior, exchange rates, trade and market data. “

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