BLACK STAR CAPITAL LTD. (CEO: Masamitsu Hirai, London, the United Kingdom) announced on 18
February that it offered cooperation to Securities and Exchange Commission (hereinafter “SEC”) * for the
Sources Sought Notice dated 31 January with regards to blockchain data (Solicitation Number:
50310219Q0041), which asks blockchain companies to offer blockchain data so that SEC can monitor risks
and ensure compliance.
As SEC aims to conduct market surveys to determine the availability and technical capability of the large and small businesses that offer blockchain technology through monitoring risks, improving compliance and spread commission policies in digital assets, blockchain companies that can obtain the data of blockchain ledgers that are most widely used including the range of available information and detailed transaction records are requested to offer such information as necessary for such surveys. The blockchain data will help verify misconducts and track compromised accounts, and it is expected that laws required for further development of the cryptocurrency market will be facilitated.
Responsibilities required for informants include:
- Regularly offer the sampled data of its blockchain ledger that is most widely used
- Process and normalize data to enable review and surveys
- Offer capacities to gain insight from available data including attribute data (e.g. identification data of the owner of encrypted addresses)
- Offer a means to prove the accuracy and integrity of the data offered
On Feburary 12, BLACKSTAR CAPITAL LTD. sent SPINDLE’s capacity statement to SEC and offered cooperation as we find that the above functions are already realized in ZETA Track α, a fraud-prevention and transaction-tracking system in ZETA and our philosophy to prioritize the transparency of investment and management is compatible with the achievement of SEC’s purposes.
ZETA Track α is a tool in ZETA developed by the team of BLACKSTAR CAPITAL LTD. in order to track tokens via individual wallets. BLACKSTAR CAPITAL LTD. They decided to develop it in response to a notice that a malicious group stole tokens via spoofed links to cryptocurrency exchanges.
The following figure shows the tracking information of tokens obtained by ZETA Track α. Individual wallet addresses are shown as blue dots, and token transactions are being tracked by straight lines that are coloured according to the transaction amount. The green squares where the lines converge are cryptocurrency exchanges. Analysis of this information can successfully reveal several wallet addresses (represented as pink dots) that supposedly engage in malicious activities and help the company grasp the damage situation.
BLACK STAR CAPITAL already satisfies SEC’s requirements and ZETA Track α can deal with the following major cryptocurrencies other than SPD and ERC series as well as tokens*. Thus it concluded that it would be able to make a major contribution to SEC’s purposes and made an offer for cooperation.
The following is the list of the blockchain ledgers that are most widely used and the data of which we can offer:
Bitcoin: Bitcoin core
BitcoinCash: Bitcoin ABC or Bitcoin SV
Lisk: Lisk Nano
Litecoin: Litecoin Electrum
Monacoin: Monacoin core
NEM: NEM Nano
Rippole : Ripple Client
Monero: Monero Wallet
BLACK STAR CAPITAL will continue to actively cooperate public research like this and thus contribute to the stabilization and development of the blockchain market.
(End of the document)
*Securities and Exchange Commission (hereinafter “SEC”) is a U.S. federal organization that supervises and monitors the transaction of securities including stocks and government bonds in the United States.
*The term “token” hereof includes all the electric media where values and information are recorded by public blockchain.