Trustformer KYT User Guide

1 Web Desk Overview

Due to its anonymity and openness and transparency, it is easier to participate in transactions without revealing private information, which brings us the convenience of asset trading and conversion in many scenarios, but also due to its openness and anonymity, it also brings many illegal transactions and compliance risks, especially the financial regulation of AML, CFT, FATF and other capital and transaction risks.Through Trustformer KYT web desk, you can get more risk control and compliance reference:

1.1 Monitor crypto transactions

Trustformer KYT screens your crypto transactions risk, automatically performs AML/CFT and sanction checks, and performs illegal, fraudulent extortion determinations, allowing your trading, analysis, and compliance teams to spend their time where it is needed most.

1.2 Wallet Address Screening

Use Trustformer KYT to screen crypto wallets for AML/CFT/FATF and sanctions risk and assess the risk of crypto wallets. Get accurate insights at minimal cost. Know who you're trading with to comply with sanctions and reduce fraud.

1.3 Crypto finance Investigation

Analyze the creation of wallets, the detailed network of transaction activity and its activity details and visualize as well as its transactions to gain new insights and present them clearly.Analyze the relevant trading activities, the flow of crypto assets, and the potential risk factors of each segment.

In crypto-asset OTC transactions, whether they actively or passively received illicit funds, or transfer transactions from regulatory sanctioned wallets, the recipient address can be associated with risk and contaminated, causing implications such as freezing of funds, risk management controls, and even legal risk of prosecution. Through Trustformer KYT Web desk, you can conduct background investigation on the transaction objects and related transactions, pre-determine the risks and analyze the causes of the risks, which can effectively help you to pre-determine, avoid and reduce the risks, protect your wallet address reputation, protect your crypto assets and the safety of crypto transactions.

2 KYT risk investigation of OTC transaction collection and payment

2.1 Investigate the credit and risk of the receipt address and payment address of crypto transactions

Before receiving payments for crypto transactions, you can get the payment wallet address from the counterparty in advance, and after getting the payment wallet address, you can investigate the counterparty through Trustformer KYT Web Desk, you can visit https://kyt.trustformer.ai/

The steps are as follows.

Go to the Risk Detect menu under KYT search in the left menu, where you can enter the wallet address, transaction hash, or project contract address to search.

The data currently covers addresses, transactions and smart contracts on the four main chains, namely Bitcoin, Ethereum, Binance Smart Chain, POLYGON and TRON, as well as supports tokens such as BTC, ETH, BNB, TRX, MATIC, USDT and USDC.

If you are the recipient

You can first ask your trading partner to provide a transaction payment address and use the Trustformer KYT tool to conduct a transaction risk survey on them. Obtain its Trustformer TCR Score and judge it based on its key information of tags, categories and sources, and factors to make the next action judgment.

If you are a payer

You can use the Trustformer KYT tool to conduct a transaction risk survey on the recipient address. Obtain its Trustformer TCR Score and make a judgment based on key information about its label, classification and origin, and factors to make a judgment on the next action.Generally speaking, according to the current risk control strategy of each OTC trading platform and OTC trading platform, passive participation in high-risk crypto transactions will also affect the risk evaluation of the address; in other words, passive participation in transactions with high-risk addresses will contaminate the evaluation of the address in other transactions.

If you are the victim of a funds freeze

You can use the Trustformer KYT tool to conduct a risk survey of address-related transactions to see the risk of the address, or the risk elements of the transaction's risk penalty. Currently, Trustformer KYT supports 43 categories of risk categories, including AML, CFT, FATF, hacking, fraud, illegal transactions, etc. Depending on the risk impact of different categories, you can decide your next action. You can refer to the data details page for the explanation of indicators.

2.1.2 Obtaining address survey analysis and data detail pages

Address details page

(1) If the wallet address you are investigating is a risky address, the page details will provide information on three dimensions, Trustformer Insight, Historical Transaction, and Atlas Analysis.

(2) In Trustformer Insight, the main information for risk modeling analysis by Trustformer KYT algorithm is provided, including TCR credit score, risk type, risk label, risk components and risk sources, and also the status of activity as of now and macro behavioral activity analysis of the risky wallet address is provided.

The above chart example, the insight module mainly contains the address active main chain, address label, entity information, balance, last active time, last active transaction behavior event information, the age of the wallet address, etc.

(3) do a risk survey of the wallet address, focusing on the Trustformer TCR score and scoring elements, the source of risk, the TCR score below 200 can determine that the wallet address is very risky.

Risk label: Direct Risk, Rug Pull, indicating that the address is a direct risk address, related to the Rug Pull scam.
Risk Type: Blackmail Scam is the risk type corresponding to the address, now Trustformer supports 43 types of risk types.
Risk Source: Risk source contains risk type, risk component elements, risk traceability and risk hierarchy, which can discover the risk component of the risk address of the wallet, the transmission relationship and the explicit elements that cause the risk.
The direction of the risk transaction to see whether the address is a risky party, or a passive participant.

(4) Wallet address background investigation, focusing on reference to the type of risk, a variety of different types of risk brought about by the impact of capital security, transaction security risk is different, as follows Trustformer KYT model in serious risk, high risk and other risk threat modeling on the theoretical framework.

-- Whether it involves financial regulation, risky addresses and transactions labeled as SDN, OFAC, Sanction, AML, CFT, U.S. political blacklist and other classifications or risk labels are the types that belong to the serious threat of capital and transaction risk.

--Determine whether the suspected hacking, theft, gambling, pornography, illegal business transactions, dark net transactions, mixed coins, child crime, whether there are funds designed for illegal transactions in the inflow or outflow of funds, corresponding categories and risk labels refer to Trustformer support 43 types of risk types, which are partly involved in illegal transactions and funds, with local jurisdiction, cryptocurrency travel policy, FATF rules are closely related, and are also the types of risk threatening seriousness, and are agnostic to the security of funds and the regulatory risk posed by subsequent derivative jurisdictions.

-- Fake financial activities, gambling, fraud and other risky funds, fake crypto market financial activities, fake ICOs, fake exchanges, fraudulent contracts or their stakeholders, etc., mainly the security events occurring on the chain and the industry resist to get risky events stakeholders, projects and related wallet addresses, contracts, etc. into the risk monitoring list, prompting you the security threat brought by such transaction risks.

-- Whether it is community governance that sanctioned by the public chain, the contract of the wallet address occurred in the transaction, compliance with the general framework of business, the current mainstream public chain platform, the famous agreement, the contract are strictly comply with the local business policy and financial FATF rules, or their underlying data structure on the public governance control list.

--Whether it is a secure contract with audit, or a risky contract, Trustformer relies on ChainUP Group's rich industry experience, technical data accumulation, and the introduction of professional industry audit service providers such as Beosin.

Address detail page with high credit risk score

Based on the historical transaction behavior and transaction mapping relationship, Trustformer KYT determines that the address has a high credit score and no risk associated with it for the time being.

2.2 Transaction risk investigation details page

You need to get the transaction hash through the wallet transaction record, or blockchain browser, copy the transaction hash, and check the hash value in the Trustformer KYT Web Desk search box

2.2.1 Risky Transaction Details Page

Shows the elements of the transaction, mainnet public chain, tag, Trustformer TCR score of the transaction, risk type, risk tag, risk source, risk factor, risk transfer relationship

The Trustformer TCR score for this transaction indicates that the transaction is a serious risk, and the risk label of Direct Risk indicates that the transaction is a direct risk, meaning that one of the parties involved in the transaction is on the blacklist.

Through the USA political blacklist, OFAC, etc., we know that the blacklist is the U.S. Treasury Department financial sanctions list.

By the source of risk, it is found that the initiator (from) involved in the transaction is a risky threat node and is on the OFAC sanction list.

2.2.2 Risk-free threatening transaction details page

In the above figure, for example, the page contains the main network public chain where the major transactions occur, important transaction addresses, behavior-related and entity-related tags, Trustformer score scores, risk-threat scan conclusions, and a summary of transaction behavior.

2.3 Contract investigation

2.3.1 Risky contract address investigation details page

Contract details page, containing contract elements and the main network public chain on which the smart contract is running, contract details elements, behavioral elements, and also the contract's Trustformer TCR score, risk type, risk label, risk source, and risk node.

The Trustformer TCR score shows that the address is a serious risk, and from the address type, and this high-risk contract is labeled as Black Address, Fake_Phishing454, etc. This contract address is a direct risk source address, blacklisted address.

2.3.2 Details page for contract addresses with no detected risk

In the above example, the page contains the information of smart contract running main chain public network, the entity label of the contract, the contract logo, Trustformer TCR score, the contract is judged to be in good credit by the historical transaction behavior information, the graphical relationship of the contract transactions, and no direct or indirect risk is found in the historical transactions related to the contract and the related address through the risk threat scan.

2.4 Historical Transaction Information

It supports viewing the historical activity information of addresses, contracts and transactions, and the information of main chain transactions, contract transactions and other online transactions can be involved in investigation and audit.

(1) Support filtering transaction activity records by time, main network public chain, transaction method, token type, internal contract transactions, etc.

(2) Support exporting and saving the forensic and deposition information.

(3) It also supports the development of audit reports according to business needs through interface-docked audit functions.

You can also book an appointment with a KYT technical expert through our website to give you a more effective solution to your problem.https://www.trustformer.ai/consulting

2.5 Support to view the transaction mapping relationship based on the node where the transaction occurred

Support "Graph Analysis" tab on the detail page, you can see the transaction mapping relationship, and continuously track the flow of funds based on the node relationship.

Support node-based fund flow and fund collection tracking