How many users actually consider avoiding receiving “tainted” cryptocurrency? Information about exchange freezes and fraud schemes is widely known, but does it lead to awareness of specific precautions? And if users do think about it, are they aware of the exact steps they should take?
This question is important to us as developers of the Btrace tool for crypto address checks. We reached out to the community through in-depth interviews and Telegram polls.
A total of 585 users participated. Some of the questions we asked:
- Have you heard of cases where users faced negative consequences (freezes, origin-of-funds questions, refusals to cooperate) due to tainted funds?
- Do you perform AML checks on your counterparty before accepting crypto to your address?
- Do you monitor risk scores and their changes over time?
- What price per AML check do you find acceptable?
Insights from AlwaysMoney
Fraud and its prevention is a constant battle of attack and defense. Protection tools encourage new attack methods, and vice versa. Tools won’t protect you unless you use them.
Often personal experience, like an account freeze or a law enforcement request, is what makes people aware of these risks.
Recommendation #1: Agree with your counterparty on prior address checks
Before cooperation, agree on address risk checks. Set an acceptable risk score threshold (e.g., below 60%). Explain it’s to prevent freezes and not about their personal reputation. Choose a tool both sides trust, like Btrace, and share reports for free.
Recommendation #2: Verify every transaction
- Ask for transaction details (sender’s address).
- Check if the address is linked to tainted funds.
- For risk score 60-69% — investigate further, keep records. For 70%+ — avoid the deal.
Recommendation #3: Keep records of your checks
Risk scores change. A timestamped report proves your due diligence at the time of transaction.
Recommendation #4: Use new unrelated addresses if you can’t check the counterparty
Receive funds to a separate wallet. After receiving, check risk scores before mixing with other funds.
Recommendation #5: Periodically change your crypto addresses
AML tools improve over time. A clean source today could be flagged later. Changing addresses protects your risk score.
Recommendation #6: Check your address before depositing to exchanges
Helps avoid freezes. Never give your deposit address to someone else. Incoming tainted funds could flag your addresses as suspicious.
Recommendation #7: Avoid mixers, anonymous tokens, darknet services
These tools raise your risk score and associate you with illegal activity, even if unintentional.
Recommendation #8: Prefer large, AML-compliant exchanges
Anonymous exchanges attract criminals, increasing your exposure to tainted crypto and higher risk scores.
Following these practices helps protect your funds, your addresses, and your reputation in the crypto ecosystem.
