2 November 2024
CipherTrace Launches New Tool For Banks Involved In Crypto
The blockchain technology security and analytics provider, CipherTrace releases a new tool ‘Armada’ for banks that are involved in cryptocurrencies.
As per the announcement, “CipherTrace Armada” is a tool that monitors transactions and marks the payment to high-risk Virtual Assets Services Providers (VASP). There are many tools from CipherTrace, and its competitors but Armada is different from them as it focuses on off-chain data instead of on-chain and can also work along with the existing bank monitoring tools.
The press release states:
“CipherTrace launches Armada to support banks and financial institutions in achieving AML compliance by providing critical visibility into risky cryptocurrency blind spots so know your customer (KYC) processes can detect and perform due diligence on virtual asset service providers (VASPs).”
The new monitoring tool ‘Armada’ can plug into existing transaction monitoring systems and check for the illegal activities by machine learning, clustering algorithms, and the company’s database of high-risk entities, which contains over 500 businesses involved in virtual asset transactions. Armada could track down Money Services Businesses (MSB) which may be hiding their real activities through hidden accounts and different names.
CipherTrace marks down the unlicensed Bitcoin seller Kunal Kalra. According to the company, if Kalra’s bank had used Armada to monitor its accounts, the illegal activities of Kunal Kalra could be traced sooner. A year ago, Kalra was found guilty for running an unlicensed MSB under the fake names and transferred to a Gemini exchange account that shares cryptocurrency trading prices live and anonymous Bitcoin ATMs. He succeeded in exchanging around $25 million in cash and cryptocurrency for darknet drug dealers.
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