Cryptocurrency intelligence company, Arkham Intelligence, is facing serious allegations after a report was released by the whistleblower platform, Crypto Leaks. The report accuses the company of exploiting vulnerabilities in major exchanges to obtain personal information from users.
Published on October 5th, the report is based on a video testimony from a former Arkham engineer, whose name has been released as “Kevin” to protect his privacy.
In the video, Kevin claims that Arkham used “backdoor” exploits on Binance and FTX to link exchange users to their private cryptocurrency wallets. He alleges that the Arkham CTO asked him to create multiple accounts on his behalf in order to bypass the Anti-Money Laundering/Know Your Customer (AML/KYC) restrictions when creating accounts.
“They asked me to create an account on Binance and FTX… to study it, because I’m a European citizen and they are not,” Kevin said.
If these allegations are true, it suggests that the company was using multiple accounts on Binance to track transactions on deposit and withdrawal addresses, enhancing their ability to identify owners of addresses linked to Binance. This would constitute a serious violation of user privacy and the exchange’s terms of service.
Arkham openly advertises having technology to “de-anonymize” blockchain transactions and connect addresses to real-world identities. However, the company maintains that this is done legally using public data.
The Crypto Leaks report also makes claims of securities violations, “cult-like” management practices, and unethical behavior at Arkham unrelated to exchange exploits. These broader allegations paint the company in a negative light, but contain fewer details than the exchange exploitation claims. Neither Arkham nor Binance have issued statements regarding the allegations.