Crypto analytics firm Chainalysis has published a proposed ontology outlining standards for blockchain tracing, aimed at helping investigators use high-quality data in transaction tracking. According to reports from CoinDesk, the company's chief scientist Jacob Illum explained that the proposal is intended to start a conversation about blockchain analytics standards. The document breaks down 'clusters' of addresses into component parts to help investigators better understand their data and confidence levels in analysis.
The ontology development was significantly influenced by Chainalysis' experience in the U.S. Department of Justice case against Roman Sterlingov, co-founder of crypto mixing service Bitcoin Fog, who was convicted on money laundering charges in 2024. As reported by CoinDesk, during the trial, Judge Randolph Moss held a Daubert hearing to determine whether Chainalysis' Reactor tool was rigorous enough for prosecutorial use, ultimately ruling that 'substantial evidence supports the government's submission that the software is highly reliable'. The company is leveraging this legal precedent to argue for the reliability of its methodology.
The ontology establishes a two-tier structure for wallet attribution, with the first tier defining the structural graph and the second assessing analysis confidence. According to CoinDesk reports, investigators typically don't have private keys to determine cluster control, forcing them to analyze onchain data instead. Jacob Illum clarified that while Chainalysis can track funds to entities like crypto exchanges, investigators may need subpoenas to identify specific customers. He emphasized that wallet science must stand independently based on blockchain data, separate from questions about entity control or end users.
The company is positioning this proposal as a starting point for broader industry discussion about blockchain analytics standards. As reported by CoinDesk, Chainalysis has not actively solicited significant feedback beyond initial discussions with law enforcement groups. Illum emphasized the importance of independent scrutiny and testing, stating that 'when people start stepping away from independent scrutiny about their methodologies, like independent testing, that's a clear danger sign'. He expects the industry to provide feedback on the proposed ontology framework.
