The crypto analytics firm has released a proposed framework aimed at assisting investigators in identifying and connecting groups of crypto addresses.
By Nikhilesh De|Edited by Cheyenne Ligon Jun 29, 2026, 3:07 p.m. 3 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on Chainalysis released a proposed framework for blockchain analytics on Monday. (Nikhilesh De/CoinDesk)SummaryShow- Chainalysis unveiled a proposed framework for crypto analytics on Monday, establishing standards meant to assist investigators in utilizing high-quality data for transaction tracing.
- Jacob Illum, the company's chief scientist, informed CoinDesk that this proposal seeks to ignite discussions surrounding blockchain analytics.
- The document aims to dissect "clusters" of addresses into their constituent parts, enhancing investigators' understanding of their data and the reliability of that data.
Traditionally, tracing funds on a blockchain has necessitated sophisticated tools, often resulting in a complex process. In response, Chainalysis is addressing this issue.
The firm has introduced an ontology that delineates how investigators can trace funds to address clusters and determine which wallets may be operated by the same entity, aiming to establish a standard for law enforcement agencies to employ during investigations, as stated in a recent blog post.
According to Jacob Illum, Chainalysis' chief scientist, the ontology is designed to create standards for blockchain analytics, providing assurance to investigators or prosecutors regarding the relevance of the data they might utilize in legal cases.
"If I were the one seeking this information to either convict, prosecute, or investigate, what capabilities would I require from a tool?" Illum reflected on his approach to the proposal. "… what does the data support? My role is to inform investigators as thoroughly as possible about what can be gleaned from the data."
Chainalysis drew from its involvement in the U.S. Department of Justice's case against Roman Sterlingov, co-founder of Bitcoin Fog, who faced conviction for money laundering in 2024, to inform its ontology development.
During the trial, a Daubert hearing was held by the presiding judge to evaluate whether Chainalysis' Reactor tool met the necessary rigor for prosecutorial use. Ultimately, Judge Randolph Moss determined that "substantial evidence supports the government's claim that the software is highly reliable."
The firm is leveraging its software's prior courtroom validation to assert a solid foundation for its methodology.
Illum emphasized that Chainalysis is publishing this proposal to "initiate discussions" within the broader crypto sector regarding potential standards, although it has not actively sought extensive feedback, apart from initial talks with law enforcement organizations.
Clusters
The proposed ontology begins with the premise that existing blockchain analytics tools operate based on the notion of a "cluster," a term which "lacks a standard definition across the industry," as indicated in the document reviewed by CoinDesk.
Chainalysis breaks this concept down into various elements, starting with wallet segments that might serve as deposit addresses, change addresses, or fulfill other roles.
The ontology outlines Chainalysis' perspective on attribution regarding these clusters, proposing a dual-tier structure; the first tier "defines the structural graph," while the second assesses the confidence level in that graph.
"What does it signify that these addresses are grouped together? It's evident that someone believes they are controlled by the same entity, right?" Illum remarked. "This could involve an exchange, a darknet market, or a mixer, among others. But what criteria establish that these items genuinely belong together?"
Investigators typically do not possess private keys, which would be the most straightforward method to confirm if a cluster of addresses is managed by a single entity; therefore, they must rely on on-chain data.
Illum clarified the limitations of this analysis: While Chainalysis can investigate transactions and clusters, it cannot independently identify the actual end user without additional information.
For instance, while it can trace funds to a crypto exchange or another entity managing wallets for customers, investigators may need to issue a subpoena to ascertain the identity of the customer.
Thus, the ownership of a wallet or the entity linked to it are distinct inquiries from the tracing process itself.
"These two aspects are entirely separate, as the science of the wallet must stand independently, supported by the blockchain," he explained.
Illum expressed that the company is looking forward to industry feedback regarding the proposed ontology.
"When individuals begin to distance themselves from independent evaluation of their methodologies, such as through independent testing, that is a clear warning signal," Illum cautioned. "This is the only means to verify that practices are conducted correctly… there is no alternative way to assess these methodologies."
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