DeFi Protocol 1inch Screens Millions of Wallets for AML Risks

A hand touching icons on a glass and the 1Inch logo

Since 2022, the DeFi protocol 1inch has been screening millions of wallets for Anti-Money Laundering (AML) risks using TRM Wallet Screening. Hundreds of high-risk addresses have been identified, and 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.

An Understanding of Risks

1inch, a decentralized finance (DeFi) protocol, has been screening millions of wallets for Anti-Money Laundering (AML) risks since 2022. The protocol has identified hundreds of high-risk addresses, and 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. TRM Wallet Screening has sharpened 1inch’s understanding of the types of risks according to its report in a recent publication.

Regulatory Compliance and Safety

The DeFi protocol’s efforts to screen wallets for AML risks is a step towards making the DeFi space more secure and compliant with regulations. The protocol’s use of TRM Wallet Screening has helped it identify high-risk addresses and take action against them. The prevalence of child sex abuse material vendors, scams, and hacked and stolen funds among the high-risk addresses is a reminder of the need for greater security measures in the DeFi space.

1inch’s screening of wallets for AML risks is part of a broader trend in the DeFi space towards greater compliance and regulation. As the DeFi space continues to grow, regulators are taking a closer look at the space and considering how to regulate it. The screening of wallets for AML risks is a step towards making the DeFi space more secure and compliant with regulations.

Need to Bar Illicit Activities From The DeFi Space

1inch’s screening of wallets for AML risks is an important step towards making the DeFi space more secure and compliant with regulations. The prevalence of child sex abuse material vendors, scams, and hacked and stolen funds among the high-risk addresses is a reminder of the need for greater security measures in the DeFi space. As the DeFi space continues to grow, it will be important for protocols like 1inch to continue to take steps towards greater compliance and regulation.

Author: Jinka

Jinka is a self-trained crypto journalist, passionate about happenings in the industry.