CoinDesk
Chainalysis published a proposed ontology for blockchain analytics on Monday, laying out how investigators should define the clusters of crypto addresses they use to trace illicit funds. The document breaks the term 'cluster' into component parts, starting with wallet segments that may serve as deposit addresses, change addresses, or other functions, and assigns a two-tier confidence structure: one tier defines the underlying graph, the other grades how certain the analysis is.
Chief scientist Jacob Illum told CoinDesk the goal is to start a conversation with the wider industry, not to dictate terms. He framed the proposal as what a prosecutor or investigator would actually need from a tool, including clear statements of what the data does and does not support.
Why it matters
The push comes at a moment when Chainalysis' tracing methodology is no longer hypothetical. The company leaned on its role in the U.S. Department of Justice's case against Bitcoin Fog co-founder Roman Sterlingov, convicted on money laundering charges in 2024, to argue it has a courtroom-tested foundation. During the trial, Judge Randolph Moss held a Daubert hearing and ruled that 'substantial evidence supports the government's submission that the software is highly reliable.' A formal ontology could make that kind of admissibility argument easier to replicate in future cases.
There is also a defensive element. Illum warned that 'when people start stepping away from independent scrutiny about their methodologies, like independent testing, that's a clear danger sign,' signalling the firm wants the industry to scrutinise its own approach before regulators or defence attorneys do it for them.
Market impact
For law enforcement and compliance teams, the proposal is a first attempt at a shared vocabulary across a fragmented vendor landscape where different analytics firms define clusters differently.
Frequently asked questions
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What did Chainalysis actually publish?
A proposed ontology for blockchain analytics that breaks the idea of a 'cluster' of addresses into component parts, from wallet segments up to attributed entities, and adds a two-tier structure grading the underlying graph and the confidence in the analysis.
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Why is the Sterlingov trial relevant to the proposal?
The DOJ used Chainalysis' Reactor tool to help convict Bitcoin Fog co-founder Roman Sterlingov on money laundering charges in 2024. The judge held a Daubert hearing and ruled the software 'highly reliable,' which the company is now using as evidence its methodology can survive courtroom scrutiny.
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What does a 'cluster' mean in Chainalysis' framework?
Chainalysis argues the term has no universal meaning today. Its ontology redefines it as a set of wallet segments, including deposit and change addresses, linked together, with a separate layer for how confident the analysis is in that linkage and any attribution to a real-world entity.
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Can Chainalysis identify the end user behind a wallet?
No. Illum said the firm can trace funds to clusters and to custodial entities like exchanges, but identifying the actual end user requires additional offchain information, typically a subpoena.
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Who is the proposal aimed at, and has anyone responded?
It is aimed at law enforcement, prosecutors, and other crypto analytics firms, with the stated goal of starting a broader industry conversation. Chainalysis has held initial talks with law enforcement groups but has not actively solicited wider feedback yet.
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