In recent weeks, crypto intelligence firm Arkham Intelligence has found itself at the center of a heated controversy. A report released by whistleblower platform Crypto Leaks has accused the company of exploiting vulnerabilities at major exchanges to obtain users’ personal information. These revelations have raised serious concerns about Arkham’s business practices and have called into question the firm’s commitment to user privacy and ethical conduct.

According to a video testimony from a former Arkham engineer, who referred to himself as “Kevin” for privacy reasons, the company used “backdoor” exploits at Binance and FTX to link exchange users to their private cryptocurrency wallets. This alarming revelation suggests that Arkham was deliberately violating user privacy and terms of service by tracing transactions in deposit and withdrawal addresses. Such actions would be considered a severe violation of user trust and a breach of the exchanges’ terms and conditions.

Unethical Requests

In addition to exploiting vulnerabilities, Kevin also claimed that Arkham’s CTO, Henry Fisher, instructed him to create multiple accounts in his name to bypass AML/KYC restrictions on account creation. This raises questions about the company’s commitment to following regulations and abiding by the law. Kevin’s description of Fisher’s response to his concerns further highlights the ethical concerns surrounding Arkham’s practices. Fisher seemingly dismissed the potential illegality of their actions, suggesting that they would proceed regardless.

While Crypto Leaks has provided verified whistleblowers in the past, the identity of Kevin and his actual affiliation with Arkham have not been independently verified beyond reasonable doubt at this time. Although Arkham openly advertises technology to deanonymize blockchain transactions, the company maintains that it does so legally and by using public data. If the accusations against Arkham are true, it would suggest that the company misrepresented its practices and misled its clients.

The Crypto Leaks report also includes broader allegations of securities violations, “cult-like” management practices, and unethical behavior at Arkham, unrelated to the exchange exploits. While these accusations paint a negative picture of the company, they contain fewer specific details than the claims of exchange hacking. Nonetheless, these allegations warrant further investigation by regulators and the exchanges involved, such as Binance and FTX. It is essential that the authorities thoroughly examine all aspects of Arkham’s business practices to ensure compliance with regulations and the protection of user interests.

Cryptoslate has reached out to Arkham for comment, and the company’s official response is awaited. Binance, one of the exchanges implicated in the allegations, has also been contacted but has not provided a statement concerning the accusations of exchange system abuse. As more details emerge, it is crucial for all parties involved to respond appropriately and take the necessary steps to address the concerns raised by the report. The seriousness of the accusations calls for a thorough and impartial investigation to determine the veracity of the claims and the implications for the industry.

The controversy surrounding Arkham Intelligence has caused significant upheaval within the crypto community. The accusations of exploiting exchange vulnerabilities, unethical behavior, and securities violations have cast a shadow of doubt over the company’s reputation. As the investigation unfolds, it will be crucial for regulators, exchanges, and industry participants to scrutinize Arkham’s practices and take appropriate action to address any violations of user privacy and trust. The findings of this investigation will not only shape the future of Arkham but also serve as a reminder of the importance of transparency, privacy, and ethical conduct in the crypto industry as a whole.


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