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This could lead to unjustified account restrictions when blockchain surveillance tools are used for compliance, and in the worst case land unsuspecting individuals on the radar of law enforcement agencies without probable cause.

https://www.btctimes.com/news/coindesk-pulls-l0la-l33tzs-article-questioning-whether-chainalysis-surveillance-software-works

 

 

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https://www.coindesk.com/consensus-magazine/2023/07/24/chainalysis-investigations-lead-is-unaware-of-scientific-evidence-the-surveillance-software-works/

Ekeland said Chainalysis’ Reactor is “a black box algorithm” that “relies on junk science.”

In a hearing aimed to establish the admissibility of expert testimony, Bisbee was pressed for details on the accuracy of the Reactor software Chainalysis sells to governments for law enforcement purposes, including what evidence the company has that suggests it works.

Bisbee said she was unable to provide the court with statistical error rates for Chainalysis’ Reactor software. She said she unaware of any scientific peer-reviewed papers or “anything published anywhere” attesting to the accuracy of Chainalysis Reactor.

Instead, Chainalysis reportedly judges its software’s accuracy using customer feedback, she said.

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