The perturbing question of privacy in the world of digital currencies recently got an interesting twist. A petition on Change.org is challenging the use of Chainalysis data analytics by US federal agencies, raising questions about the technology’s accuracy and potential overreach.
The petition, initiated by “Stop Chainalysis,” argues the company’s data analysis tools have not gone through scientific review nor satisfied the Daubert Standard for expert testimony. This Standard, established by the U.S. Supreme Court in 1933, demands factual accuracy and scrutinizes the software’s error rate. If Chainalysis fails these criteria, it’s cast in an unappealing light with its potentially faulty methodologies.
This agreeably helps law enforcement agencies to prevent crypto-based crime by linking real-world identities to crypto payments, but as users of digital currencies value their financial privacy, their association with criminal activity based on often unverifiable conclusions throws the Fourth Amendment right into jeopardy. This Amendment requires the presence of probable cause for the issuance of a warrant for search and seizure.
The petition further warns about a possible violation of the Bank Secrecy Act, where exceptions are provided based on suspicious activity. A fundamental question trails this, “Is simple use of cryptocurrency suspicious?” This, coupled with links to seven U.S. federal agencies leveraging Chainalysis’ services, as per the petition, solidifies the alarm shared by crypto enthusiasts.
The petition was publicly supported by Lola Leetz (L0la L33tz). In August, CipherTrace’s director Jonelle Still submitted a report questioning Chainalysis’ technology in the case of United States v. Roman Sterlingov, claiming an erroneous link was made between Sterlingov and the Bitcoin Fog cryptocurrency mixer.
Ultimately, the conversation centers around a fine line – protecting people’s privacy and interests while enabling effective action against illicit activities. The danger lies in how much trust we place in unvetted technology and its ramifications on representative bodies and individuals. While Chainalysis could be exemplary for law enforcement agencies hunting down crypto crime, its unchecked use could, as the petition argues, lead to potential privacy violations and undue criminal implications.
Source: Cointelegraph
