The Office of Foreign Assets Control (OFAC), a financial intelligence and enforcement agency within the U.S. Treasury Department, has requested a second subscription to licensing, training, and support packages from blockchain analysis firm Chainalysis, according to General Contract Notice.
OFAC requires a commercial blockchain tracking web application tool to provide its Office of Global Targeting (OGT) investigators to analyze and track virtual currency transactions such as Bitcoin, in order to gather attribution information on interested parties that the OGT may place on [Specially Designated Nationals] List,” the notice reads. “This tool will specifically support the implementation of OFAC cyber sanctions.”
OFAC صنع made Similar request May 4, 2021. The Specially Designated Nationals (SDN) list includes parties sanctioned for conducting financial transactions by the United States due to money laundering or terrorist financing concerns.
While Bitcoin can facilitate financial transactions under pseudonyms, each transaction is recorded in a public and immutable digital ledger. This allows blockchain analytics firms like Chainalysis to determine the details of Bitcoin transactions, sometimes including the real-world identities behind them.
There are some layers of privacy that Bitcoin users use to better hide these transactions, such as coin shuffle and CoinJoin. But this latest subscription request appears to be specifically targeting coin-mixing services such as Wasabi Wallet.
“This license also includes Wasabi Demixing services at no additional cost to OFAC, and without limitation on the number of orders,” in the notice. “Chinalysis meets OFAC requirements by effectively providing the following capabilities: address aggregation; transaction flow mapping and graphs; Portfolio Explorer analyze user behavior, exchange rate, trade and market data.