A crypto address verification checks all links to other addresses and entities within blockchain networks, analysing both incoming and outgoing funds. This helps identify connections between the address in question and other entities. A crypto transaction verification, on the other hand, focuses on the entire transaction process. The results depend on your role in the transaction, and the risk score will reflect the counterpart's involvement in the exchange. To perform a transaction check, you will need to provide the Transaction ID (TxID) and the destination address, while specifying whether you are:

• Recipient (you received funds): The system will analyse the addresses that sent the funds and the risk sources associated with those addresses, detailing the services used by senders and the respective fund percentages.
• Sender (you sent funds): The system will evaluate the recipient's address and provide a risk analysis of its connections, with associated percentages of risk.

The frequency of checks depends on your organisation’s risk management framework. As a best practice, it is advisable to conduct an AML check each time you interact with an unknown wallet or smart contract to ensure secure crypto transactions and minimise potential risks.

The results of a crypto check include a risk score percentage, associated risk sources, and any blacklist associations. Additional information may be available, such as cluster affiliation, current balance, and total transferred funds, although some data may not be accessible if there is limited information. For blockchains with restricted data access, crypto address validation and KYT verification may not provide clustering or risk scores. A risk score can only be generated if the address is linked to an identified entity.

The risk score represents the likelihood, as a percentage, that an address is involved in illicit activities. It is calculated by analysing the connections between the address and various entities on the blockchain. Each entity is assigned a unique risk level, contributing to the overall score. For example, low-risk entities like Mining have a smaller impact on the score, while high-risk entities such as Sanctions or Darknet significantly increase the risk score. This process provides a detailed view of the potential risks tied to a crypto address, helping to ensure a secure and compliant transaction environment.