A petition was created on Change.org on Sept. 12 to oppose the usage of Chainalysis forensic companies by federal agencies. The petition questioned Chainalysis’ accuracy and raised authorized points associated to the actions of the blockchain knowledge evaluation agency.
The petition, began by “Stop Chainalysis,” said that Chainalysis’ software program assists crime prevention efforts “by linking the real world to crypto payments.” It said:
“It is our belief that the use of non-scientifically proven software and alleged inaccurate methodologies to implicate individuals in the occurrence of crimes puts the people’s right to financial privacy at risk.”
The petition claimed that Chainalysis’ findings don’t meet the Daubert normal for skilled testimony in United States courts established by the U.S. Supreme Court in 1933, that its error fee is unknown, that it has not been topic to peer assessment and that it makes use of doubtlessly defective methodology.
Related: Chainalysis exec touts blockchain analysis to Senate homeland security committee
The technical issues with the service lead to potential privateness violations, the petition argued:
“As anyone can be implicated by such software regardless of their involvement in criminal activity, individuals and entities cannot expect that their financial information is kept private.”
The use of unreliable know-how constitutes a violation of the Fourth Amendment requirement of possible trigger to subject a warrant for search and seizure and the Bank Secrecy Act, to which exceptions are granted primarily based on the presence of suspicious exercise, it stated.
Hey @chainalysis, subsequent time you strive to name somebody unqualified for being denied a FED membership, possibly ensure that the very letter of denial does not cite insufficiencies to stop AML violations in your individual software program as a motive for rejection https://t.co/eqv7KtXcU7 pic.twitter.com/i6wh8qJy4E
— L0la L33tz (@L0laL33tz) September 9, 2023
The petition listed seven U.S. federal agencies that had used Chainalysis’ companies.
The petition was first publicized by Lola Leetz, a pseudonym stylized as L0la L33tz on X (previously Twitter), who has been a vocal critic of the corporate. The X consumer just isn’t alone of their criticism. In August, CipherTrace director of investigations and intelligence Jonelle Still submitted a report in the case of the United States v. Roman Sterlingov that claimed Chainalysis’ know-how was used incorrectly to hyperlink Sterlingov to the Bitcoin Fog cryptocurrency mixer.
Magazine: Tornado Cash 2.0: The race to build safe and legal coin mixers
