Crypto Exchanges & Web3
Bridging Fiat and On-Chain Compliance
Diliguard provides AML software for crypto exchanges that combines fiat banking compliance with on-chain wallet checks. The proprietary intelligence engine correlates traditional identity verification with cryptocurrency wallet risk scores to intercept illicit funds before they exit the ecosystem.
The Web3 Compliance Challenge
Crypto exchanges operate at the intersection of heavily regulated fiat banking and decentralized blockchain networks. Compliance teams must manage the friction of onboarding retail users while defending against sophisticated North Korean hacking syndicates and darknet money laundering operations.
Diliguard’s Application for Crypto Exchanges
1. Automated Fiat Onboarding
AML Compliance Software & PEP Screening uses advanced entity resolution to verify users instantly. By cross-referencing global watchlists, PEP records, and Interpol notices, the system separates administrative noise from genuine threats during the fiat onboarding phase.
2. Wallet Risk Scoring
Before processing withdrawals, Crypto & Digital Asset Investigation evaluates the destination wallet. The engine assigns an exact risk score by checking the address against sanctioned-entity databases, darknet market records, and illicit wallet traces.
3. Sybil Attack and Fraud Prevention
Airdrop farmers and fraudsters deploy bots to create thousands of synthetic accounts. Ultimate Fraud Prevention analyzes device telemetry and associated email risk scores to identify coordinated Sybil attacks before they extract liquidity.
4. VPN and Proxy Detection
Malicious actors rely on masked routing to bypass geographic trading restrictions. IP & Network Intelligence identifies traffic originating from residential proxies or known VPN endpoints, enforcing strict jurisdictional compliance.
Frequently Asked Questions
How does Diliguard check a wallet before processing a withdrawal?
Crypto & Digital Asset Investigation checks the destination address against sanctioned-entity and illicit-activity databases, then reports the wallet balance and transaction count. The assigned risk score decides whether the withdrawal proceeds, requires review, or is blocked.
Does Diliguard screen users during fiat onboarding or only crypto transactions?
Both. Fiat onboarding runs sanctions, PEP, and Interpol checks at account creation, while wallet checks run at the transaction layer. The two checks use the same case file, so the exchange gets a single view of each user’s risk.
Can Diliguard detect airdrop farming and bonus abuse at scale?
Yes. Ultimate Fraud Prevention analyzes device telemetry and email risk signals to spot thousands of accounts originating from the same device or identity pattern. Coordinated Sybil attacks are flagged before they can extract liquidity.
How does the platform enforce geographic trading restrictions?
IP & Network Intelligence geolocates each session and flags traffic from residential proxies and VPN endpoints. Users attempting to mask their location are assigned a risk probability and blocked from restricted markets.
A Day in the Life: The Exchange Compliance Officer
Scenario: A newly verified user attempts to withdraw a large sum of Bitcoin to an external address.
- Risk Trigger: Diliguard’s Crypto Investigation module intercepts the withdrawal request.
- On-Chain Forensics: The system analyzes the destination wallet’s transaction history, identifying a two-hop linkage to a sanctioned mixer service.
- Network Mapping: The engine cross-references the user’s session data, confirming the connection originated from a VPN endpoint.
- Automated Interception: The API freezes the withdrawal and flags the account for immediate regulatory reporting.