You don’t have to be anti-establishment or engage in illegal activities to be fascinated by the anonymity of blockchain. There are certainly many reasons why people don’t want centralized banks to oversee their finances. And cryptocurrencies promised to bring about change. But then Arkham Intelligence came along and changed the rules of the game. Do we have reason to be afraid? Or is this project a dead end for doxing?
Article content: Arkham Intelligence
Anonymous blockchain? More like the pseudonymous nature of cryptocurrencies
Cryptocurrencies are often said to offer both transparency and anonymity. But the truth is a little more uncomfortable. Blockchain offers only partial anonymity (so-called pseudonymity), which hides your personal data but shows all transactions and wallets used.
It is essentially impossible to be invisible on the blockchain. You can buy cryptocurrencies off-chain on an exchange and trade them there. However, as soon as you transfer them to your wallet, they will appear on the blockchain. And even if you only manage your coins on an exchange, that exchange will have your data. The same applies to mining. The miner’s address is public, as is the number of blocks they have mined. There is simply no escape from pseudonymity.
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Pseudonymity is fine – why should we be afraid?
The transparency of the blockchain is one of the features that users value as much as the anonymity of their identity. And it seemed that this would remain the case. However, with the arrival of Arkham Intelligence in 2020, the situation changed radically. There were already companies offering help against cryptocurrency fraud. They collected information from exchanges and offered governments tools to combat money laundering. But Arkham took the game a step further. It began publishing the identities of cryptocurrency wallet owners.
What does that mean in practice? It means that it began publishing wallet addresses and the names of their owners. And, of course, the amounts they have in their wallets. Does that sound like science fiction to you? In that case, read on.
How can Arkham Intelligence find out information about your identity?
Arkham Intelligence uses a combination of different methods to access private user data. Its AI tools scrape the internet looking for any data about crypto wallets. Have you ever shared your address on a forum? Then you may be in Arkham’s database. At the same time, serious accusations have emerged that the company uses backdoors of various exchanges such as Binance or FTX to steal user data.
Arkham also relies on the users themselves. Anyone can sign up for the service and share their personal information in exchange for Arkham tokens (ARKM). Of course, they also get paid when they “snitch” on someone else. Any of your acquaintances to whom you have sent crypto can betray you for a fee.
Arkham has thus opened the door to the private information market. Moreover, it does not use it for marketing, like other companies, but for publishing and doxing users.
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How can Arkham Intelligence be legal?
Arkham is walking a fine line. It argues for transparency and claims that all its data is obtained legally. However, whistleblowers claim the opposite. In 2023, information emerged that Arkham also collects information about blockchain users from their social media accounts and location. All of this can then be used to dox your identity.
Arkham exposed Trump and the founder of Ethereum
So far, states and their legislation are losing the battle against cryptocurrencies. They are unable to adapt and prevent companies like Arkham from existing. Although the cryptocurrency community despises Arkham and its mission, it has certainly found its supporters. This is evidenced by the fact that the company has managed to expose the crypto wallets of such famous personalities as Donald Trump and Ethereum founder Vitalik Buterin.
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