Bitrace Research Exposes Risks of Anonymous Online Markets with Cryptocurrency

Bitrace has recently unveiled a concerning trend within the Telegram coin exchange robot ecosystem, primarily involving the TRC20 USDT cryptocurrency.

This trend includes a substantial number of addresses associated with gambling, money laundering, stolen coins, and fraudulent activities, which can potentially taint innocent users’ addresses and expose them to financial threats.

Bitrace Research Reveals Concerns on Telegram Coin Exchange

A recent study by Bitrace Research has shed light on the alarming presence of gambler addresses, money laundering addresses, stolen coin addresses, and fraudulent addresses within online anonymous markets, raising concerns about potential financial risks for users.

According to Bitrace’s research, Telegram’s scalability has led to the proliferation of intelligent robots for currency exchange. These robots enable automatic fund transfers, typically involving TRX/USDT pairs, allowing users to control the exchange address authority or act as agents. In either case, the exchange’s funds are linked to the robot service provider’s business address.

An example of these risks can be seen in the TRON address TJS…3333333333. Bitrace’s open-source network intelligence identifies it as the payment address of an anonymous technical service team specializing in customizing TRON accounts and Telegram robots.

This address has received funds from 93 counterparties, with a substantial portion originating from risky activities, such as gambling and money laundering. The subsequent transfer of these funds to exchange addresses further increases the risk.

Bitrace Research Reveals Alarming Cryptocurrency Trends

Bitrace’s research has also unveiled other alarming areas of concern in the cryptocurrency realm. There is a widespread practice among online gambling platforms of using “good accounts” customized through third-party tools as business addresses for processing bets, fund transfers, and settlements. Unfortunately, many of these accounts accumulate risky funds, tainting the service provider’s address with gambling-related funds.

Additionally, a fraudulent scheme known as zero-transfer phishing is on the rise, where scammers initiate multiple small-amount transfers to unspecified addresses, misleading users who copy payment addresses from previous transactions.

More sophisticated variations involve creating addresses with specific tail numbers, posing risks to service providers if phished funds end up in their payment addresses.

Bitrace’s research highlights the financial risks of cryptocurrency transactions in anonymous online markets, particularly those involving Telegram coin exchange robots using TRC20 USDT. As the appeal of anonymity persists, users must exercise caution when engaging in these transactions to mitigate the risk of tainted addresses and financial harm.

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