Arkham Intelligence Denies False Bitcoin Transaction Alerts by DB on ‘Mt Gox’ and ‘US Gov’ Transactions
Market intelligence platform Arkham Intelligence has denied accusations that it sent an incorrect message to certain users, following reports that it had caused a false alarm for Bitcoin transactions worth more than $10,000.
The platform suggested that the alerts were set by DB, also known as tier10k, who inferred that certain Bitcoin addresses were transacting based on labels that he had set himself. DB then tweeted publicly that addresses tied to the US government and Mt. Gox were transacting crypto, leading to claims that Arkham had made an error.
We have conducted an investigation of the DB Alert situation, and determined that the Arkham alerts were sent accurately in this case.
DB set two alerts on all Bitcoin transactions above $10k USD, with no counterparties set, then named the alerts “Mt Gox” and “US Gov”.
When we… pic.twitter.com/8OITiygNhL
— Arkham (@ArkhamIntel) April 26, 2023
However, Arkham has now denied any wrongdoing, stating that it conducted an investigation and determined that the alerts were sent accurately. The platform suggested that the event that ultimately caused the alert may be non-standard on-chain activity, with some commentators speculating that an Ordinals inscription on the relevant addresses made them appear to be engaged in a transaction without actually moving funds, thus triggering the alert in question.
Despite DB seemingly confirming with Arkham that a bug fix deployed that day had caused alerts to be sent erroneously to a small subset of users, Arkham denied any error and insisted that the alerts were correctly sent to DB, and that no one received inaccurate alerts.
This incident highlights the need for caution and verification in the crypto industry, particularly in relation to automated alert systems. While Arkham’s denial suggests that the error was not on their part, the confusion surrounding the incident serves as a reminder of the importance of thorough investigations and verifying the source of alerts before taking action.
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