Bitfury Group said it is concerned about the increasing number of users with multiple bitcoin wallet addresses. According to the company, it leads to greater anonymity and promotes the growth of crime.
«Bitcoin users can have multiple addresses», — said the President of the Group Bitfury, Valery Vavilov. «This facilitates the concealment of his identity and committing crimes with the help of the blockchain», he concluded.
Company Bitfury, founded in 2011, best known for her work in the field of mining. It is assumed that at some point, the group owned nearly half a million bitcoins. If the company managed to retain at least half of these coins today, its condition can be considered truly astronomical — 250 thousands BTC at $ 16,000 = $ 4 billion).
Bitfury has made her fortune largely due to the mining commissions, which are also growing rapidly. Bitfury – respected company in the community of bitcoin. For a long time, the company planned to expand its activities outside of mining.
«The best engineers Bitfury came up with an incredibly innovative approach to the analysis of transactions in the Bitcoin blockchain» — notes
Vavilov. «This new method will help to investigate and reduce criminal activity online.»
Vavilov insisted that the ability of his company to associate with a common address owner («clustering»), is an important new tool that will help law enforcement agencies to conduct investigations. The statement is encouraged and praised the work of police and regulators.
A new method
Bitfury has published a White paper which describes in detail the new method of analysis of the blockchain. The company argued that «clustering is a process which aims to identify addresses belonging to the same user by analyzing the data of the blockchain. Linking multiple addresses to a single user will help the work of law enforcement bodies», — is spoken in the message of the company.
The method group can be considered innovative, because although «the previous algorithms build a clustering model using the information of the blockchain and confirmed its off-net data, the new method Bitfury uses both types of data to build the model. The proposed approach allows investigators to reduce the number of errors that occur due to unreliable sources of input data and achieve a higher level of accuracy.»
Jason Weinstein (Jason Weinstein), a former employee of the U.S. Department of justice, now an Advisor of Bitfury, agrees:
«Open the monitored registry, which displays every bitcoin transaction that has ever been undertaken, allows law enforcement to «track cash flows» in a manner that was never possible in the investigation regarding cash».
Such a close relationship with the government became the reason of discontent of many members of the community.
«I’m disappointed in Bitfury,» said Bitcoin Core developer Jimmy song (Jimmy Song). «This is a bad situation. It’s like a new stage of development Chainalysis. You can find out who does what. I’m a little disappointed in Bitfury Group is the fact that they contribute to it. However, the data exist, so sooner or later someone had to facilitate their analysis.»
Counter-transaction monitoring may be the means of anonymization of the blockchain, such as the introduction of the technology of zk-snarks or suggestions, like Mimblewimble.