Cryptoasset Anti-Financial Crime Specialist (CCAS) Certification Practice Test

What type of activity would most likely prompt an analyst to investigate indirect exposure to an illicit service?

1. Lack of address activity.

2. A peel chain.

3. Funds received from a regulated exchange.

4. Participation in a mining pool.

The correct answer is: A peel chain.

Investigating indirect exposure to illicit services is often prompted by a peel chain. A peel chain refers to a specific type of transaction method used to obscure the source of funds, often utilized by those seeking to launder or move illicit funds. In this scenario, an analyst would recognize the involvement of peel chains as a potential indicator of underlying suspicious activity or connections to illicit services. Peel chains typically involve the movement of small amounts of cryptocurrency from one wallet to another in a manner that complicates tracking and tracing. This obfuscation technique is commonly employed by individuals aiming to conceal their transactions from law enforcement or regulatory scrutiny. The other choices present factors that could warrant investigation but do not inherently signal indirect exposure to illicit services as clearly as a peel chain does. For instance, a lack of address activity might indicate inactivity but does not directly suggest illicit activity; funds from a regulated exchange would typically be considered legitimate; and participation in a mining pool, while possibly involving complex regulations, does not inherently suggest a connection to illicit activities. Thus, the complexity and association of a peel chain with the concealment of illicit activities make it the most relevant choice for prompting investigation.