Table of Contents
- 1inch Screens Millions Of Wallets
- Proactive Compliance
- How TRM Works
Decentralized finance (DeFi) platform 1inch has screened millions of wallets for Anti-Money Laundering (AML) risks since 2022.
The proactive security efforts by 1 inch have led to the discovery of hundreds of high-risk addresses.
1inch Screens Millions Of Wallets
The effort by the DeFi platform has significantly boosted security and reliability, with the TRM Wallet Screening helping 1inch find hundreds of high-risk addresses and helping 1inch identify typical risks such as child abuse material, fraud, and compromised or pilfered monies. The screening process also proactively blocks high-risk addresses from accessing the platform or products, ensuring enhanced security. 1inch is one of the most prominent entities in the DeFi space, with over 11 million customers, and $400 billion worth of trading activity.
Blockchain and cryptocurrency journalist Wu Blockchain took to X, posting about 1inch’s wallet screening activity.
“DeFi protocol 1inch has screened millions of wallets for AML risks since 2022, identifying hundreds of high-risk addresses. TRM Wallet Screening has sharpened 1inch’s understanding of the types of risks. Those linked to child sex abuse material vendors, scams, and hacked and stolen funds were the most prevalent among the addresses that 1inch ultimately decided to be barred from accessing its products.”
Proactive Compliance
Legislation has seen a considerable shift, with authorities targeting exchanges, custodians, brokers, and centralized crypto ecosystems. There are other challenges as well, such as direct blockchain transactions between users in a decentralized setting. Regulators, legislators, and business partners must find a way to facilitate lawful users to conduct transactions securely and anonymously while simultaneously reducing risks from threat actors and illicit users who could exploit disintermediated software.
1inch is among a growing list of DeFi protocols that are adopting compliance measures and partnering with blockchain intelligence providers such as TRM to ensure compliance with sanctions and limit the ability of threat actors who use DeFi and DeFi protocols for illicit activities. Most users interact with DeFi protocols anonymously. This is why 1inch has prioritized identifying AML and sanctions risks, limiting its exposure to threat actors and illicit funds.
This is why 1inch integrated TRM Wallet Screening, TRM Labs’ on-chain AML, and sanctions risk-detecting tool into the 1inch dApp and 1inch Wallet to screen user wallets at regular intervals. The list created by the integration is used to cross-check end users who interact with the 1inch API to the list of high-risk actors previously documented by the 1inch app and wallet.
How TRM Works
TRM is designed to detect and restrict high-risk crypto addresses. Since 1inch began using TRM’s API to check product wallets, it has detected and limited hundreds of high-risk addresses. The increase in monthly wallet API inspections shows TRM’s commitment to risk management improvement.
Thanks to TRM Wallet Screening, 1inch can better understand its products’ financial and user risks. 1inch’s integration with TRM allows the DeFi platform to protect the DeFi ecosystem from illicit currency and prohibit its business from processing it.
Based on the risk factors detected by TRM’s API, 1inch can restrict users from connecting to the 1inch dApp, 1inch Wallet, or the 1inch API, or conduct transactions using these services.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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