Merkle Science provides blockchain intelligence through advanced transaction monitoring and wallet risk scoring capabilities. It helps crypto businesses, financial institutions, and government entities detect, investigate, and prevent illegal activities involving cryptocurrencies.

Its key capabilities include:

• Behavioral rule engine. It goes beyond static blacklists to proactively detect suspicious wallet addresses using behavioral pattern analysis, even before they are tagged on public databases.
• Real-time transaction monitoring — continuous monitoring with instant alerts when risk levels change, enabling immediate compliance response.
• Comprehensive coverage — support for multiple blockchain networks with sanctions attribution for high-risk entities.

How Merkle Science works

Sumsub integrates Merkle Science into Transaction Monitoring solution to provide seamless blockchain intelligence without requiring separate API credentials or complex setup procedures. Sumsub manages the entire integration, allowing you to leverage Merkle Science's analytics directly within your existing compliance workflow.

The integration enables real-time risk screening for cryptocurrency activity using a wallet address, or a wallet address combined with a transaction hash. When a crypto transaction is initiated, Sumsub does the following:

1. Extracts the wallet address (and the transaction hash, if available).
2. Screens the wallet and/or transaction via Merkle Science's intelligence data.
3. Generates a comprehensive risk report.

Merkle Science's powerful analytics provide you with a number of benefits, allowing you to immediately act on suspicious behavior. These benefits include:

• Identification of illicit activity by analyzing fund sources and wallet behavior.
• Detection of exposure to sanctioned transactions, darknet activity, and other high-risk sources.
• Enhanced transaction risk screening when a transaction hash is provided, including exposure analysis and risk indicators tied to the transaction flow.
• Evaluation of both hosted and unhosted wallets before approving transactions.
• Enhanced transparency for tracing and identifying fund transfers between VASPs.

Get started with Merkle Science

The following is a sequence of steps to be taken to enable Merkle Science crypto monitoring.

Step 1: Request access

Crypto Monitoring with Merkle Science can be enabled through your Customer Success Manager. Contact your Customer Success Manager at [email protected] to request access.

Step 2: Install rules

Once you have Merkle Science enabled for your account, you can install the pre-configured rule bundles from the Sumsub Dashboard:

1. Navigate to the Rules Library.
2. Install the Crypto Monitoring: Merkle Science rule bundle. We recommend installing all rules in the bundle for comprehensive coverage. For more instructions on how to manage rules, see this article.
3. Review and customize rule parameters based on your risk appetite and regulatory requirements.

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   Note

   Pre-scoring rule bundles should be installed first, as they are required for many monitoring rules to function correctly.

Step 3: Create custom rules

Optionally, you can create custom rules tailored to your specific business needs and risk policies. Custom rules allow you to set up risk thresholds and use specific signals provided by Merkle Science. For more information on how to create and set up custom rules, see this article.