Taint Analysis (Taint Tracing)
tactic
Core idea
Calculates the percentage of tainted, illicit-origin funds present in downstream addresses using FIFO, poison, or proportional-haircut models. Quantifies exposure to sanctioned or criminal funds.
When to use
Determining whether a receiving wallet (e.g., an exchange deposit address) has meaningful exposure to flagged funds, for SAR filing or seizure justification.
Avoid when
There is no universal legal taint threshold; disclose the specific model used to regulators (FinCEN, OFAC) or the court.
Example
A deposit address receives funds two hops from a sanctioned mixer; a proportional-haircut model quantifies the tainted fraction to justify a SAR filing.
Related
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