Arkham Intelligence, a crypto intelligence firm, is facing allegations from whistleblower platform Crypto Leaks. According to the report, Arkham Intelligence is accused of exploiting vulnerabilities in major cryptocurrency exchanges like Binance and FTX to access and reveal users’ personal information.
The accusations suggest that Arkham Intelligence is infringing on user privacy and potentially violating legal and ethical boundaries in the cryptocurrency industry, which looks bad for them.
Disturbing allegations surface against Arkham Intelligence
The report revolves around the video testimony of an individual identified as ‘Kevin,’ a former engineer at Arkham. In the video, Kevin asserts that Arkham utilized “backdoor” exploits within Binance and FTX to establish connections between exchange users and their private cryptocurrency wallets. He further claims that the CTO of Arkham requested Kevin to create multiple accounts in his name to bypass AML/KYC restrictions on account creation.
If these allegations are accurate, it suggests that the company was using several Binance accounts to track transactions in deposit and withdrawal addresses, enhancing its ability to identify the owners of Binance-linked addresses. That would be a serious infringement on user privacy and a violation of terms of service.
The Crypto Leaks report also levels accusations of securities violations, describing management practices as “cult-like” and pointing to other unethical behavior at Arkham unrelated to the exchange exploits. While these broader allegations negatively impact the company, they provide fewer specific details than the claims related to exchange hacking.
Arkham openly markets technology for de-anonymizing blockchain transactions and linking addresses to real-world identities. However, the company asserts that it conducts these activities within legal bounds using publicly available data. If the accusations are proven true, it would imply that Arkham misrepresented its practices.
The allegations brought forth in the case are undeniably grave. The report highlights that users of the highlighted platform may be deeply concerned about the potential exposure of their private token addresses and transactions by Arkham, leaving them vulnerable to fraudulent activities and extortion.
It also suggests a possible action, temporarily taking the Arkham platform offline. This pause would allow for a comprehensive investigation into the events, determining exactly what transpired and removing any information acquired in violation of terms and conditions.
The mysterious rise of Arkham Intelligence
The emergence of Arkham Intelligence in June 2021 raised initial suspicions due to its release of professional defamation, especially considering the company did not yet have a functioning blockchain intelligence platform. At the time, Miguel Morel was the sole known member of the team, and information about him and the company was notably scarce online. Despite this, Miguel displayed a high level of articulation.
Further investigations into Arkham and its associates revealed a connection to the Reserve cryptocurrency project, and many team members were found to have ties to the Leverage Research cult. It was concluded that the production of defamatory material was likely done on request. Interestingly, it was discovered that one of the hidden motives behind the Reserve cryptocurrency project was to channel funds back to Leverage Research.
Following the defamation incident, Arkham seemingly came into a substantial amount of money. The core team, previously located in a countryside house near Austin, Texas, moved significantly to a lavish mansion in Chelsea, London, which reportedly costs $43.5k monthly. Just one week after arriving in London, Miguel embarked on a notably extravagant shopping spree at Selfridges. This event was documented by a local influencer, providing a striking illustration of the team’s newfound affluence.
