Chainalysis - Reading Assignment

Privacy Coins - Ultimate Course
#41

  1. Connection to any of the following: Stolen funds, Dark Net Markets, Mixers, Terrorism, Ransomware

  2. HSI, FBI, IRS, ATF, DEA, SEC, Secret Service, CIA, and many US government agencies, in addition to large Police Departments and Canadian, European, and UK agencies.

  3. He recommends Monero.

  4. He recommends using Wasabi/Coinjoin, using a VPN/Tor, avoiding mobile wallets, and remembering that logs are kept of everything that one does on the clear net.

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#42
  1. The five most likely causes your transactions ‘suspicious’ are if being stolen funds (like from a hacking type incident), coming from a dark net market, coming from a mixer, coming from terrorist financing, and coming from ransomware payout addresses.
  2. There is a whole lot of government and high level users of the Chainalysis software; including but not limited to: HSI, FBI, IRS, ATF, DEA, SEC, Secret Service, CIA, NYPD, RCMP, Europol, and the NCA.
  3. Monero is the privacy coin recommended as the best for keeping your transaction real private.
  4. The whistleblower recommends to always mix your transactions with a coinjoin service. They say to use the Wasabi wallet for Bitcoin transactions.
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#43

  1. Being stolen funds, coming from a darknet merchant, coming from a mixer, coming from terrorist financing, and coming from ransomware payout addresses.

  2. HSI, FBI and IRS “ATF, DEA, SEC, Secret Service, CIA (through In Q Tel),NYPD

  3. Monero

  4. Use Coinjoin, Wasabi avoid mobile wallets, look into Wasabi/Coinjoin and similar efforts, run a VPN/tor at all times

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#44

  1. First: Stolen funds (e. g hacking), Second: transaction comes from a dnm, Third: TX comes from a micer, Fourth: TC comes from terrorist financing, Fifth: TX comes from ransomware payout address

  2. HSI, FBI, IRS, AT, DEA, SEC, Secret Service CIA, NYPD, other federal law enforcement agencies, district attorney offices, RCMP, Europol, NCA

  3. Monero and Bitcoin with techniques like Wasabi/Coinjoin

  4. Avoid mobile wallets, use techniques like Wasabi/Coinjoin/mixer, run a VPN/tor at all times

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#45

Q1: Stolen funds, DNM funds, Mixer Funds, Terrorist Financing, and ransomware payout addresses.

Q2: Most three letter agencies and worldwide spy agencies; to name a few CIA, FBI, MI6, NYPD and many many more.

Q3: Monero and the use of mixers

Q4: Avoid Mobile Wallets, Look into Wasabi/CoinJoin and similar efforts, run a VPN/TOR at all times and remember that everything you check out on the clear net is being logged by someone.

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#46
  1. What are the five most likely causes for a Bitcoin transaction being marked as ‘suspicious’?
    being stolen finds, coming from a darknet market, coming from a known mixer, coming from terrorist financing, and coming from ransomware payout addresses.
  2. Which government agencies use Chainalysis software?
    HSI, FBI, IRS, ATF, DEA, SEC, Secret Service, CIA, NYPD and etc
  3. What cryptocurrency does the whistleblower recommend for privacy?
    monero
  4. What advice does the whistleblower give for preserving anonymity when using Bitcoin?
    Using the Wasabi wallet, use CoinJoin and avoid mobile wallets. It also recommends using a vpn/tor
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#47

1 - What are the five most likely causes for a Bitcoin transaction being marked as ‘suspicious’?

Bitcoin transaction being marked as ‘suspicious’ if they appear to:
- be stolen funds (like from a hacking type incident)
- be coming from a dnm
- be coming from a mixer
- be coming from terrorist financing
- be coming from ransomware payout addresses

2 - Which government agencies use Chainalysis software?

The government agencies using Chainalysis the most are HSI, FBI,IRS(most license issued), ATF, DEA, SEC, Secret Service, CIA (through In Q Tel), and most of the other federal law enforcement agencies. Also large police departments and district attorney offices are running the software like NYPD. Internationally, RCMP(Canada), Europol and national police (NCA) in the UK.

3 - What cryptocurrency does the whistleblower recommend for privacy?

The whistleblower recommended monero for privacy, but cautioned the use of mobile wallets that don’t incorporate privacy measures.

4 - What advice does the whistleblower give for preserving anonymity when using Bitcoin?

When using Bitcoin, it was recommended to avoid mobile wallets, use Wasabi/Coinjoin and the like, always use a VPN/Tor, to remember that everything you check out on the clear net is being logged by someone.

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#48

• Stolen funds (hacking), Darknet Markets, coming from a mixer, or terrorist financing and ransomware payout addresses.
• FBI, RIS, HIS, Dee, NYPD….etc
• Monero and to avoid usage of mobile wallets.
• To use mixers and to avoid mobile wallets, usage of VPN’s as well.

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#49
  1. Being stolen funds, coming from a darknet merchant, coming from a mixer, coming from terrorist financing, and coming from ransomware payout addresses.
  2. The government agencies using Chainalysis software include HSI, FBI, IRS, ATF, DEA, SEC, Secret Service, CIA and only really large police departments are running the software like NYPD, because it is expensive.
  3. The anonymous employee recommends Monero.
  4. The whistleblower recommends avoiding mobile wallets, using a VPN / tor and look into Wasabi / CoinJoin and similar efforts.
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#50

  1. The five most likely cuases for a BTC transaction to be marked as suspicious are funds that are stolen, coming from a DNM, coming from a mixer, being related to terrorism funds, hailing from a ransomware payout address.

  2. Chainalysis software is used by security agencies, law enforcement and tax.

  3. The whistleblower recommends using Monero for privacy.

  4. To preserve anonymity when using Bitcoin the whistleblower advises avoiding mobile wallets, run a VPN/tor, use a CoinJoin type of service.

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#51

  1. What are the five most likely causes for a Bitcoin transaction being marked as ‘suspicious’?
    Being stolen funds (like from a hacking type incident),
    coming from a dnm,
    coming from a mixer,
    coming from terrorist financing,
    and coming from ransomware payout addresses

  2. Which government agencies use Chainalysis software?
    HSI, FBI and IRS, In addition, “ATF, DEA, SEC, Secret Service, CIA (through In Q Tel), and most of the other federal law enforcement agencies are running the software, RCMP uses the software too. And Europol and the national police (NCA) in the UK.

  3. What cryptocurrency does the whistleblower recommend for privacy?
    Use Monero and mixers

  4. What advice does the whistleblower give for preserving anonymity when using Bitcoin?
    Use a mixer / look into using a wallet such as Wasabi that has coinjoin functionality , use a VPN, and preferably not a mobile wallet.

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#52
  1. Being stolen funds (like from a hacking type incident), coming from a dnm, coming from a mixer, coming from terrorist financing, and coming from ransomware payout addresses.
  2. HSI, FBI, IRS, ATF, DEA, SEC, Secret Service, CIA, NYPD, RCMP, Europol, NCA and most of the other federal law enforcement agencies.
  3. Monero.
  4. Avoid mobile wallets, Wasabi/Coinjoin and similar efforts, run a VPN/tor at all times.
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#53
  1. The five likeliest things to have your bitcoin transaction flagged as suspicious are

a. Being stolen funds (like from a hacking type incident),
b. coming from a dnm,
c. coming from a mixer,
d. coming from terrorist financing,
e. coming from ransomware payout addresses.

  1. The government agencies using Chainalysis software include HSI, FBI and IRS (they “seem to have the most licenses, or are, at least, the most active in using our software, since their names come up constantly.”) In addition, “ATF, DEA, SEC, Secret Service, CIA (through In Q Tel), and most of the other federal law enforcement agencies are running the software. Only really large police departments are running the software (it isn’t cheap) like NYPD. I know some district attorney offices have software licenses too, but I don’t know which ones. Oh and RCMP uses the software too. And Europol. The national police (NCA) in the UK, as well.

  2. The whistleblower recommended monero for privacy.

  3. The advice the whistleblower gives for preserving anonymity when using bitcoin is to avoid mobile wallets, look into Wasabi/Coinjoin and similar efforts, run a VPN/tor at all times, remember that everything you check out on the clear net is being logged by someone. Avoid mobile wallets, look into Wasabi/Coinjoin and similar efforts, run a VPN/tor at all times. Remember that everything you check out on the clear net is being logged by someone. Chainalysis’ most hated adversarial tool was probably Wasabi, a privacy-oriented [BTC] wallet that used Coinjoin. Bitcoin mixers are “still bad” for forensics firms, Wasabi is enemy number one. There is no way to de-anonymize it, and I don’t see how the government can legally take Wasabi down, so it will probably persist. Put it this way, if everyone used Wasabi, Chainalysis would go out of business. Running your own node and electrum server is a great way to not get your IP tracked” by Chainalysis software, he countered that mobile wallets are bad for privacy.

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#54

Can anybody tell me what they mean by “coming from a dnm”?

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#55
  1. What are the five most likely causes for a Bitcoin transaction being marked as ‘suspicious’?

Five most likely causes for a Bitcoin transaction being marked as ‘suspicious’ are:

1.) Being stolen funds (like from a hacking),

2.) Coming from a dnm,

3.) Coming from a mixer,

4.) Coming from terrorist financing,

5.) Coming from ransomware payout addresses.

  1. Which government agencies use Chainalysis software?

According to Whistle-blower; HSI, FBI, IRS, ATF, DEA, SEC, Secret Service, CIA, and most of the other federal law enforcement agencies are running the software. Only really large police departments, some district attorney offices, RCMP, NCA (in the UK) and Europol are using the software as well.

  1. What cryptocurrency does the whistleblower recommend for privacy?

The whistle-blower recommended monero for privacy.

  1. What advice does the whistleblower give for preserving anonymity when using Bitcoin?

He advised users to avoid mobile wallets, look into Wasabi/Coinjoin and similar efforts, run a VPN/tor at all times and to remember that everything you check out on the clear net is being logged by someone.

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#56

Dark Net Markets Sites like Silk Road

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#57

@Grant_Hawkins I am in “Stealth addresses” I can’t make out what you are saying about Alice’s tx with bob. with address index 1 she gets a one time use public key B?1. ? = set, sa … I can’t make it out?

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#58

So Bob has two master addresses, which are closer to functions:

Master secret/spending key = Msk; // Bob’s ‘private key’
Master public key = Mpk; // Bob shares this with the world

Alice takes Mpk and adds some random info, and makes a one-time-use address for Bob:

randInfo = Math.random();
Mpk ( randInfo ) = oneTimeUseAddress;

Next, randInfo gets encrypted and put on the blockchain. When Bob scans the blockchain with Msk, he will be able to decrypt it and get randInfo. Then he can use randInfo with Msk to generate the one time use private key:

Msk ( randInfo ) = oneTimeUsePrivateKey;

Finally, Bob can use that to generate a signature for the oneTimeUseAddress:

sign ( UTXO ID, oneTimeUsePrivateKey );

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#59

  1. Being stolen funds, coming from a darknet markets, coming from a mixer, coming from terrorist financing, and coming from ransomware payout addresses

  2. HSI, FBI, IRS, ATF, DEA, SEC, Secret Service, CIA, federal law enforcement agencies and large police departments.

  3. The whistleblower recommended Monero for privacy.

  4. The whistleblower advised running your own BTC node, running a VPN at all times, avoid mobile wallets, and using services like Wasabi and CoinJoin.

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#60

I’m sorry Grant. I will have to figure all this out. It seems more confusing to me right now. This stuff comes slow to me some times. I take notes. Write down everything you say. I was just wanting the word your saying between

B and 1. It sounds like b set 1, or be sa 1. I wasn’t understanding that. I put it down until I got that word. It has been a day or two so it will take me a bit to get my head around where I was. You were saying it quite a bit after 1:02 on. in the stealth addresses chapter. Sorry I was not explicit enough.

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