Sumsub Boosts Crypto Fraud Detection with Merkle Science’s Wallet Tracking

Sumsub Boosts Crypto Fraud Detection with Merkle Science’s Wallet Tracking

by November 8, 2023

Global full-cycle verification platform Sumsub is augmenting its Travel Rule solution by partnering with Merkle Science, a predictive Web 3.0 risk and intelligence platform.

The Travel Rule, mandated by the Financial Action Task Force (FATF), is a crucial compliance requirement in major jurisdictions.

By integrating Merkle Science’s wallet monitoring feature into its Travel Rule solution, Sumsub aims to enhance transparency and assist its digital asset clients in accurately tracing and identifying the source of fund transfers involving various Virtual Asset Service Providers (VASPs).

The partnership will provide Sumsub’s clients with an additional verification layer through Sumsub’s AML and anti-fraud products.

With the incorporation of Merkle Science’s wallet monitoring feature, Sumsub offers capabilities such as ongoing transaction monitoring, enabling real-time alerts for digital asset companies in case of a change in risk level.

This enhancement simplifies compliance and verification processes, allowing for the identification of illicit activity by monitoring sanctioned transactions and analyzing fund source and behavior.

The Travel Rule has already been incorporated into legislation in several Asia-Pacific (APAC) countries, with more expected to follow suit. For instance, Singapore has integrated the Rule into its Payments Service Act (in effect since January 2020), mandating the verification of the identities of originator VASPs and the recording of KYC details before conducting fund transfers.

According to Sumsub’s State of Verification and Monitoring in the Crypto Industry 2023 report, 56% of crypto businesses surveyed globally have plans to integrate the Travel Rule solution but have yet to complete this process.

Penny Chai

Penny Chai

“In order to meet Travel Rule compliance, it’s crucial VASPs have a clear understanding of their blockchain partners and their risk profiles. This requires implementing a combination of robust Know Your Business (KYB) and KYC processes, as well as having precise blockchain risk analysis.


We are confident that teaming up with Merkle Science will streamline the compliance process, fostering trust and ensuring compliance throughout the industry.”

says Penny Chai, VP of Business Development, APAC at Sumsub.

Ian Lee

Ian Lee

“In the realm of digital assets and cryptocurrencies, building a robust and secure foundation is essential for their secure and enduring development. This is why, at Merkle Science, we’re excited to collaborate with Sumsub, a partner who shares our vision.


With enhanced verification processes and monitoring, we anticipate playing a pivotal role with Sumsub in helping the digital asset industry reduce risk and achieve compliance in the long run.”

says Ian Lee, Director & Product Lead at Merkle Science.