Regular crypto exchange users do not often think about the origin of the cryptocurrency they receive as payment for their services or through exchange services. However, these funds may come from illegal sources, in which case the wallet owner may face account restrictions, asset freezes, or other unpleasant consequences.
The RentAcc team has compiled a set of basic financial hygiene rules worth following when making payments in cryptocurrency. In this article, we explain what an AML wallet check is, what Risk Score means, and why it is important to monitor it.
What is an AML check and why is it necessary?
AML is a set of measures aimed at preventing money laundering and the financing of illegal activities. In the crypto industry, an AML wallet check usually refers to analyzing an address or a specific transaction using blockchain analytics tools. The service examines the history of fund movements, links to other addresses, and known risk categories. This analysis helps identify direct and indirect connections with high-risk categories and assess potential compliance risks. At the same time, the wallet’s Risk Score is calculated.
Risk Score is an indicator calculated by an AML service that reflects the estimated risk level of an address or transaction. There is no single universal scale or set of thresholds, as different services use their own models and assess:
- transaction history;
- the nature of incoming funds;
- the likelihood of interaction with illegal sources;
- information collected about the address and related transactions.
Therefore, it is important to consider not only the final score but also the specific sources of risk, the address’s direct and indirect connections, and the recommendations provided by the selected service.
AML checks are closely related to other financial monitoring mechanisms:
- KYC — a procedure used to verify a customer’s identity. Regulated centralized exchanges generally require users to complete KYC and confirm their identity. Requirements vary depending on the service, jurisdiction, and operations available to the user.
- KYT — a transaction monitoring mechanism that helps determine the origin of funds and trace their movement before they reach a specific address.
Checking the Risk Score of crypto senders and recipients independently can help reduce the likelihood of negative consequences, avoid account restrictions, and protect business reputation. Before sending or receiving cryptocurrency from a new or unfamiliar counterparty, it is worth checking their wallet address in advance. BitOK considers a score above 75% to be high risk, while explicitly noting that each user determines their own acceptable risk level. A simple preliminary check can help protect against interactions with scammers and minimize the risk of future restrictions imposed by an exchange.
Even with a Risk Score above 80%, funds may still be successfully credited. However, regularly using a wallet with a high risk level significantly increases the likelihood that a service will eventually impose restrictions or request additional verification.
Why digital hygiene in crypto matters and why you should check the recipient’s AML risk in advance
Many people assume that if cryptocurrency is sent from a major exchange, there should be no issues with the transaction. However, when working with digital assets, it is important to follow basic digital hygiene practices because responsibility for an incoming transaction also lies with the recipient. The recipient takes on the sanctions-related risks associated with the funds they receive.
1. How can you receive dirty cryptocurrency?
You cannot immediately see the Risk Score of a specific address or identify its owner directly on the blockchain. This information can only be obtained through specialized AML services that analyze transaction history and the wallet’s connections with other addresses. If you do not check the source of incoming funds, there is a risk of receiving cryptocurrency with a questionable origin. This can happen even accidentally, for example through a P2P transfer or when using an illegal exchange service.
“Dirty” cryptocurrency generally refers to funds associated with shadow or high-risk sources. The names of categories and how they are interpreted may vary depending on the AML service. A connection to one of these categories does not always prove that the funds are illegal, but it may trigger additional checks:
- Darkmarket — crypto originating from platforms on the TOR network that are used for illegal trade;
- Blackmail — funds from wallets associated with extortion;
- Hacking — assets obtained as a result of hacking attacks;
- Ponzi schemes — funds associated with financial pyramids and fraudulent investment schemes;
- Sanctions — funds originating from sanctioned sources;
- Mixer — transactions combined into a shared pool to obscure their origin. In many countries, the use of such services is considered illegal or may be treated as money laundering.
The methodologies, blockchain coverage, and assessments used by different AML services may vary. The result of a check is a risk indicator rather than a legal conclusion or a guarantee that no restrictions will be imposed later.
According to Chainalysis, crypto scammers and related schemes stole at least $17 billion in 2025. This figure does not represent the entire volume of money laundering, but it illustrates the scale of risks associated with fraudulent addresses and the subsequent movement of stolen assets. Regularly checking incoming transactions can help reduce the likelihood of receiving “dirty” funds and facing account restrictions or other unpleasant consequences.
2. What happens if you use a contaminated address?
If cryptocurrency with a questionable origin reaches a wallet, the next AML check may assign that address a higher Risk Score.
Continued use of such an address may lead to the following consequences:
- Restrictions imposed by crypto exchanges. A platform may reject deposits or withdrawals and, in some cases, temporarily freeze the account.
- Blacklisting. The address may be excluded from the list of addresses accepted by legitimate exchange services, making it more difficult to buy or sell cryptocurrency.
- Problems accessing assets. If a connection to sanctioned addresses is detected, centralized services may block the transaction, request additional documentation, or refuse to service the address.
- Risk of law enforcement checks. The address owner may become involved in an investigation even if the funds were received accidentally.
In addition, a wallet freeze or restrictions on individual transactions may result in financial losses. Restoring access to assets often requires proof of the origin of funds and can take a long time. In some cases, it may not be possible to regain access to the wallet at all.
3. How can you minimize the risk of receiving dirty cryptocurrency?
There are specialized services for analyzing cryptocurrency addresses, such as Btrace, AML Bot, GetBlock, and BestChange. Using these tools makes it possible to assess risks before a transaction and reduce the chance of suspicious funds reaching your wallet.
⚠️ It is recommended to separate cryptocurrency assets across several wallets. Use different addresses for personal transfers, business operations, and savings to reduce the risk of losing a large amount of funds if one of the addresses encounters problems.
When using P2P platforms, it is important to exercise caution, especially if the service does not require KYC verification. To reduce risks, it is better to use trusted exchange services and check the history of funds before they reach your wallet. If you plan to purchase cryptocurrency from another user, it is recommended to perform an AML check on their address before completing the transaction. This simple step helps minimize the risk of receiving “dirty” crypto and the consequences associated with it.
Quick checklist for working with crypto
To reduce risks when working with digital assets, follow a few simple rules:
- Check your wallet’s AML status. You can use specialized services such as @BitOK_AML_bot, which provides 5 free checks.
- Never give AML-check services access to your wallet. For a one-time AML check, it is usually enough to provide the public wallet address or TXID. Never share your seed phrase, private key, backup codes, or sign unknown transactions. Only connect your wallet to trusted services after reviewing the permissions they request.
- Separate assets across different addresses. Personal funds, business funds, and savings are better kept in separate wallets. This simplifies accounting and reduces operational losses if one of the addresses is restricted, but it does not erase transaction history or guarantee the absence of AML-related connections.
- Monitor your Risk Score. If your wallet is flagged as contaminated, you should take steps to address the issue or create a new wallet on another exchange.
- Keep proof of the origin of funds. Transaction screenshots, receipts, and TXIDs can help you pass verification faster if an exchange or exchange service requests evidence of the origin of your funds.
AML checks should not be ignored. The number of account restriction cases involving exchanges and exchange services is increasing. A high Risk Score may lead to frozen or potentially blocked assets. In the best-case scenario, the platform may simply reject a transaction. In the worst-case scenario, the funds in your account may be blocked without access to them.
Many users assume that these situations will not affect them if they only make a few transactions per month, but it is better not to take unnecessary risks and to follow the recommendations in this article.
Conclusion
Cryptocurrency remains a fast and convenient payment tool, but it is important to consider the potential risks associated with using it. Checking the origin of funds, performing AML analysis of addresses, and carefully choosing counterparties can help protect your assets and avoid problems with account restrictions. Following basic rules does not guarantee the complete absence of compliance risks, but it can help identify suspicious connections in time, prepare proof of the origin of funds, and reduce the likelihood of restrictions imposed by exchanges and exchange services.
If cryptocurrency is used to fund advertising accounts, RentAcc specialists can help you navigate the available payment methods and manage finances within the platform.
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