Blockchain Risk Assessment System
Developed a comprehensive blockchain monitoring system that integrates Scorechain technology to analyze and score cryptocurrency transactions and wallets. The system increased suspicious activity detection by 45% and ensures robust compliance with financial regulations.
The Problem
The compliance team needed to monitor cryptocurrency transactions for suspicious activity to meet regulatory requirements. Manual review of blockchain transactions was slow, error-prone, and couldn't scale with increasing transaction volumes.
The Approach
Integrated the Scorechain API to automatically score blockchain wallets and transactions based on risk indicators. Built an alert pipeline that flags high-risk transactions for human review, with configurable thresholds per jurisdiction. Added batch processing for historical wallet analysis and real-time monitoring for incoming transactions.
Results
- 45% increase in suspicious activity detection rate
- Automated compliance reporting for regulatory audits
- Real-time risk scoring for incoming cryptocurrency transactions
- Configurable alert thresholds across multiple jurisdictions
Lessons Learned
- Blockchain analytics is only as good as the data — address clustering and entity resolution are critical for accurate scoring
- False positive rates matter more than detection rates in compliance — too many alerts cause alert fatigue