Risk Category
| Category | Description |
|---|---|
| Online Gambling | Refers to gambling activities conducted over the internet. Key areas of focus include “gambling platforms operating without a license, gambling agents accepting bets from users outside their licensed scope, and payment institutions providing settlement services for the aforementioned two types of platforms. |
| Money Laundering | Refers to the process of converting, transferring, or disguising illegally obtained funds to make them appear legitimate, primarily through mixers and fiat exchanges. It is mostly related to downstream laundering activities from online gambling, illicit markets, coin theft, and fraud. |
| Black/Gray Market | Refers to large-scale, chain-like illicit activities conducted online (including the dark web) for improper financial gain, covering all upstream and downstream transactions. Examples include the sale of fake identities, promotional services, and other activities that facilitate or implement illegal operations. |
| Fraud | Refers to illegal activities where false statements, concealment of facts, or other deceptive means are used to cause others to suffer economic losses or other damages. Common types of fraud include telecommunications fraud, online fraud, and financial fraud. |
| Hacking | Refers to individuals who illegally access others’ computer systems, steal data, damage systems, or engage in other illicit activities using technical means. Hacker activities include, but are not limited to, data theft, system destruction, ransomware attacks, attacks on exchanges or DeFi platforms, fake wallets targeting individuals, and malware-based coin theft. |
| Sanctions | Punitive measures imposed by a country or international organization on a nation, organization, or individual. This includes addresses and entities listed by OFAC, HKSAR, UK, Israel NBCTF Seizures List, Gaza Now, JP MOF, Palestinian Islamic Jihad, and other sanction lists. |
| Freeze | Legally restricting access to and ability to use an individual’s or entity’s financial assets, typically imposed as a punitive measure (Specifically refers to digital currency assets frozen by companies such as Tether, Circle, etc.) |
| Drug Trafficking | Refers to illegal activities involving the manufacture, sale, transportation, possession, and use of drugs. |
| Firearms Trafficking | The illegal trade or distribution of firearms and ammunition. |
| Terrorism Financing | Providing funds for terrorist activities, involving the gathering and distribution of financial resources to support acts of terrorism. |
| Pornography | Refers to activities involving the production, distribution, sale, or possession of obscene and pornographic content. Such activities include, but are not limited to, pornographic websites, obscene videos, obscene literature, etc., and usually have a negative impact on social morals and personal ethics. |
| Political | Refers to actions or information involving political activities, political figures, or political events. Such activities may include illegal assemblies, incitement to overthrow the government, leaking state secrets, etc., and typically pose threats to national security and social stability. |
| Controlled Substances | Refers to the illegal manufacture, sale, possession, and use of substances regulated by law. These substances typically include prescription drugs, psychotropic substances, and narcotics. |
| Gore Related | Refers to actions or information involving violence, cruelty, and gore. Such content typically includes violent crimes, abuse, killing, etc., and has a negative impact on social psychology and public safety. |
| Religion Related | Refers to actions or information involving religious activities, religious groups, or religious beliefs. Religious content may include illegal religious activities, religious extremism, and religious discrimination, which could affect social harmony and public order. |
| CSAM (Child Sexual Abuse Material) | Refers to images, videos, text, and other content involving the sexual abuse of children. The production, distribution, and possession of such materials are serious crimes that cause great harm to children’s mental and physical health and social morals. |
Risk Level Definitions
| Level | Description |
|---|---|
| High Risk | Entities that are explicitly identified as having specific risk business addresses or closely associated with such risk business (i.e., 100% linked to specific risk source addresses). Such risk sources may include: 1. specific on-chain business characteristics (e.g., phishing scams, on-chain blacklists) 2. industry risk event announcements (e.g., exchange theft) 3. intelligence provided by third-party security companies 4. monitoring of illicit groups. Closely associated addresses: Refers to related addresses derived through characteristic models, whose features include but are not limited to consistent miner fees, consistent fund collection paths, high interaction overlap ratio, etc. |
| General Risk | Refers to significant fund inflows and outflows with high-risk addresses, characterized by the following features: 1. Inflow and outflow amounts exceeding a certain threshold 2. Historical risk funds accounting for more than a certain proportion 3. Address exhibiting potential malicious behavior characteristics (e.g., receiving fees from blender services, appearing on illicit community forums, etc.) |
| Low Risk | Refers to addresses other than high-risk, general-risk, and whitelist addresses. These addresses have interactions with risk funds or exhibit characteristics of unknown business activities. They lack definite attribution and proof of fund compliance. Due to their ambiguous nature, they are classified as ‘low risk’ Low Risk Label Statement: There may still be interactions with risk funds, but other behaviors, attribution properties, and fund volumes are not considered a threat based on system evaluation. Low Risk Label Validity: Based on the team’s extensive experience in risk and compliance, and in conjunction with standards jointly developed with third-party security companies, the probability of impacting user business activities is low (the rating model cannot guarantee 100% responsibility for the evaluation results and is for reference only). |
| Whitelist | Refers to 1. platform addresses with complex transaction components 2. addresses of compliant licensed institutions 3. addresses belonging to entities with no clear bad business activities 4. private wallets recognized within the industry are not applicable to general risk rating models. |