Chainalysis Leads 'Operation Lighthouse', Identifies Over 7,700 Suspicious Accounts

Blockchain analysis firm Chainalysis has announced that it has identified over 7,700 suspicious accounts in its global operation, Operation Lighthouse, which investigates cryptocurrency activities related to CSAM (Child Sexual Abuse Material).

The operation examined 29,120 cryptocurrency addresses and digital identifiers associated with over 100 CSAM-related platforms, forums, and distribution networks, yielding investigative information from 14,300 cases across 125 countries.

Sharing Investigative Information with 11 Exchanges and Payment Services

Operation Lighthouse was conducted over several days at the National Cyber Forensics Training Alliance in New York.

The operation involved more than nine law enforcement agencies, as well as over 13 private companies and non-profit organizations. Prior to the investigation, several months of data enhancement were carried out, allowing participants to investigate existing cryptocurrency information related to consumers, vendors, marketplace operators, and administrators who may be involved in CSAM.

The investigation utilized blockchain records and information held by participating organizations to examine the 29,120 cryptocurrency addresses and digital identifiers. The information obtained was shared with 11 cryptocurrency exchanges and payment services to consider further investigations and potential legal actions.

As a result of the analysis conducted by the participating private companies, over 7,700 suspicious accounts were identified across exchanges and payment platforms, with 16 of these linked to registered sex offenders.

On the other hand, Chainalysis cautions that these numbers indicate leads for investigations and do not confirm any convictions.

Using Blockchain Records as Clues for Criminal Investigations

According to Chainalysis, while the proportion of cryptocurrency activities related to CSAM is very small, its usage has been increasing in recent years.

The publicly available blockchain records leave traces of payments made through identifiable services such as centralized exchanges. When investigators identify a cryptocurrency address, they can track transactions related to other wallets and services through blockchain analysis.

Subsequently, the exchanges participating in the investigation can investigate related activities by matching them with account records, provided they meet the necessary legal and compliance requirements.

This operation included participation from Binance, Coinbase, Block, as well as the Australian Federal Police, the Royal Canadian Mounted Police, the UK National Crime Agency, Europol, and the Internet Watch Foundation.

Chainalysis states that the information obtained through Operation Lighthouse will continue to be shared through investigative channels as authorities and participating companies investigate cases, track account-level disruptions, and evaluate leads that may lead to arrests or prosecutions.