Risks

Cryptopay uses screening tools that monitor illicit cryptocurrency addresses and tag addresses that interact with them. These tools can let us know with a high degree of certainty if cryptocurrency transactions we process have been linked to (or originated from) illicit activities online (terrorist funding, ML, dark marketplace activities, trafficking and so on).

We take the data received with these tools very seriously as they help us monitor compliance with AML standards. Purpose of monitoring these transactions/addresses is, we don not want to process these funds, and neither do merchants.

A level attribute that is available in callbacks that we send to a merchant's server regarding all transaction-related events, dictates how closely the transaction that was received was related to the illicit addresses (e.g. was it sent directly from a 'bad' address, or are there a few hops in between).

Value

Description

low

No red flags

medium

No red flags but we recommend to look closely at a user whom the transaction relates to and inform your Fraud Prevention / Transaction Monitoring teams

high

Red flags. We Highly recommend to restrict the user's account and immediately inform your Fraud Prevention / Transaction Monitoring teams

Invoice callback
Channel payment callback
...
"transactions": [
{
"txid": "502e6de0c3b1d129974c55e6cd127fd548e4501ff8e8d9330ea9a30a83dbd16e",
"risk": {
"score": 3.1,
"level": "low",
"resource_name": "Bitstamp",
"resource_category": "Exchange"
}
}
],
...
...
"risk": {
"score": 3.1,
"level": "low",
"resource_name": "Bitstamp",
"resource_category": "Exchange"
},
...

Related documentation: