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Chainanalysis deployed on Tether to track transactions

Chainanalysis deployed on Tether to track transactions
By We Play Coins
Added on Feb 12, 2020

Chainanalysis deployed on Tether to track illegal transactions according to a report by cointelegraph. Tether uses the Know Your Transaction to keep a track of potentially illegal transactions on the network.

The tracking is made possible by Chainalysis’ Know Your Transaction (KYT) suite, which allows token issuers to monitor the activity of their assets. The real-time Anti-Money Laundering (AML) solution assists compliance efforts by tracking the entire chain of a token’s life, from issuance to redemption.

KYT provides both an API and a user interface to track suspicious activity, with various filtering tools.

Highlights of the Service

Identify high-risk activity

KYT detects many patterns of high risk activity, from OFAC sanctioned addresses and darknet markets, to scams and anomalous transactions.

Reduce false positives

Our comprehensive data covers thousands of services transacting in crypto, preventing false positives from hurting user experience or creating unnecessary work for your compliance team.

Real-time alerts

Use the real-time KYT API to prevent withdrawals to OFAC sanctioned entities and terrorist financing campaigns, and to freeze deposits from exchange hacks.

Automate workflows with APIs

Manage your compliance team’s workload in KYT. Use the API to integrate Chainalysis with the rest of your complIn-depth investigationsiance workflow.

Built-in case management

Keep a record of every step leading to your compliance decision. Export the audit trail for escalated reviews or examinations from banks and regulators.

In-depth investigations

Conduct advanced investigations in Chainalysis Reactor: the same industry-leading software used by law enforcement around the world.

What is Tether?

Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner. Tether works to disrupt the conventional financial system via a more modern approach to money. Tether has made headway by giving customers the ability to transact with traditional currencies across the blockchain, without the inherent volatility and complexity typically associated with a digital currency. As the first blockchain-enabled platform to facilitate the digital use of traditional currencies (a familiar, stable accounting unit), Tether has democratised cross-border transactions across the blockchain.

How does Tether work?

Tethers exist as digital tokens built on bitcoin (Omni and Liquid Protocol), Ethereum, EOS and Tron blockchains. These transport protocols consist of open source software that interface with blockchains to allow for the issuance and redemption of cryptocurrency tokens, in our case, “tethers.” Tether Platform currencies are 100% backed by Tether’s reserves. Tethers are redeemable and exchangeable pursuant to Tether Limited’s terms of service. The conversion rate is 1 tether USD₮ equals 1 USD.

The Tether Platform is fully reserved when the sum of all tethers in circulation is less than or equal to the value of our reserves. Through our Transparency page, anyone can view both of these numbers on a daily basis.1

Tether was originally created to use the Bitcoin network as its transport protocol—specifically, the Omni Layer—to allow transactions of tokenised traditional currency. Since this original version of Tether uses the Bitcoin blockchain it inherits the inherent stability and security of the longest established blockchain network.

Tether on the Ethereum blockchain, as an ERC20 token, is a newer transport layer, which now makes tether available in Ethereum smart contracts or decentralised applications on Ethereum. As a standard ERC20 token it can also be sent to any Ethereum address.

Since Tether is currently available using different transport protocols, when users send tethers to other addresses, they need to carefully check the destination address to confirm they are selecting the correct transport protocol.

What real-world currencies does Tether support?

Tether initially supports US Dollars (USD), Euros (EUR), and the offshore Chinese yuan (CNH). Represented by ₮, tether platform currencies are denoted as USD₮, EUR₮, CNH₮.