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De-Anonymisation

Definition

The process of linking a pseudonymous address or cluster to a real-world identity. Most commonly achieved through exchange KYC records, but also through IP logs, blockchain explorer account data, and open-source intelligence.

Goal
Link a pseudonymous blockchain address to a real identity
Primary source
Exchange KYC records obtained via legal process
Secondary sources
IP logs, blockchain explorer account data, open-source intelligence
Field
Cryptocurrency tracing and blockchain forensics
Precondition
Usually follows address clustering to group related addresses first

Common questions

Why is de-anonymisation usually the final step rather than the first step in tracing?+

Investigators typically cluster related pseudonymous addresses together first using heuristics such as common-input ownership, then apply de-anonymisation to the cluster as a whole. Attempting it address by address wastes effort on addresses that later turn out to belong to the same actor.

Can de-anonymisation be done without a subpoena or court order?+

Some of it can, through open-source intelligence such as public forum posts linking a wallet address to a person, but the most reliable source, exchange KYC data, generally requires legal process because exchanges do not release customer records voluntarily.

Related terms

Attribution Database
A commercial or law-enforcement dataset that maps known addresses or address clusters to real-world entities: exchanges, darknet markets, ransomware operators, sanctioned individuals,...
Change-Address Heuristic
The inference that one output from a Bitcoin transaction (usually the smaller one, to a fresh address) is change returning to the...
Co-Spend Heuristic
The inference that when multiple Bitcoin inputs appear in one transaction, all those input addresses are controlled by the same entity, because...
Mixing (Tumbling)
A service or protocol that accepts cryptocurrency inputs from multiple users and returns equivalent outputs in a way designed to break the...
Peel Chain
A transaction pattern where one large input is repeatedly split, sending most of the value one hop forward and a small remainder...

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