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Venezuela: The chain analysis examines Cryptolago

July 29, 2020

The forensic technology company Blockchain Chainalysis has published an “Intelligence Summary” of the Venezuelan stock exchange Criptolago. Titled as “Cryptolago: analysis of one of the cryptocurrency exchanges approved by the Venezuelan regime”, The American research company He devoted himself to researching the role of the exchange office in the commercialization and use of Petro, the digital currency of the Venezuelan state.

At the beginning of the report, it is stated that Cryptolago’s use of the Petro “can directly help” circumvent the sanctions imposed on Nicolás Maduro. After chain analysisThe company facilitates the exchange of petro and other cryptocurrencies with US users and elsewhere through the use of established trading exchanges.

The report expresses the importance of research on Cryptolago because “Government officials, financial regulators, and compliance experts need to understand how Venezuelan exchange interacts with the international cryptocurrency ecosystem.“”

An analysis of Cryptolago

Venezuela: The chain analysis examines CryptolagoVenezuela: The chain analysis examines Cryptolago

One of the first things to stand out from the chain analysis is the resurgence of investigations that indicate that ownership of the Venezuelan stock exchange is linked to the government of the Zulia state, which Omar Prieto also included in the Zulia figure. Government is headed. The American company states that Prieto not only holds the position of “President of the Board of Directors of Criptolago”, but is also an “unconditional ally” of Nicolás Maduro and that he is also sanctioned by the United States.

In addition to the administrative number, the forensic company also rated the Bitcoin addresses linked to Cryptolago. The report contained 2,952 Bitcoin addresses that are said to be under the control of the Venezuelan exchange. All of these addresses have received 67.35 bitcoins and sent 66.97 bitcoins since July 2019. At the time of writing, Chainalysis indicated that Cryptolago had 0.053 BTC.

Of the transactions specified by Chainalysis They confirmed that 22.43 bitcoins from Crypto Wallets went to regulated international exchanges. The addresses held by the Venezuelan exchange also received a total of 2.29 bitcoins from these exchanges.

The report also found that 6.64 bitcoins were issued for P2P portals, while 3.54 BTC was received at Cryptolago’s addresses.

Possible actions against Venezuelan exchange?

Despite the fact that Chainalysis is not part of a U.S. government department, the forensic company left various memories in its report. He mentioned that directly Cryptolago could enable the goal of US-sanctioned nationals and organizations to evade such sanctions.

It is also expressly pointed out Regulated cryptocurrency companies should “be aware of companies like crypto” and catalog that such structures could involve users of regulated companies doing business with sanctioned individuals and companies.

Finally, they invite regulators and government officials to “Tools required to monitor the way Venezuelan companies interact with the cryptocurrency system and to investigate suspicious activity that may constitute sanction violations“”

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