Specifically, the newest CipherTrace-developed Armada will work closely with the off-chain data, compared to the usual focus on on-chain of other solutions of the firm. Armada can also work in tandem with the monitoring measures applied by banks.
“To identify transactions with virtual asset service providers (VASPs), including those with weak KYC or operating as unregistered money service businesses (MSBs).”
Via the launch of Armada, CipherTrace reportedly looks to offer “critical visibility into risky cryptocurrency blind spots”, to help with the detecting and performing processes of knowing your customer (KYC) protocols, regarding due diligence on virtual asset service providers (VASPs)”, as well as identify counterparty risk connected with a large number of companies.
“CipherTrace has the most accurate data attribution coverage tying real-world entities to crypto addresses, enabling Armada to link banking data and billing descriptors to entities, which is a big differentiator from competitors because it is critical for transaction matching.” John Jefferies – CipherTrace chief financial analyst – reportedly believed in the accuracy of data collected by the firm.
“Risky entities include sanctioned entities, known criminal activities and thefts, dark markets, higher-risk exchanges, HYIP scams, malware, ransomware, and mixers.” Jefferies went on to provide a clearer definition of what is considered “high-risk virtual payments” by CipherTrace.