ZachXBT, a prominent on-chain analyst, has raised concerns about the potential misjudgment of high-risk cryptocurrency addresses, which could harm reputations. In a recent post on the X platform, ZachXBT highlighted that compliance tools used by teams like World Liberty Financial (WLFI) might incorrectly label certain exchanges or smart contracts as high-risk. He emphasized the importance of manual review, citing his recent experience where manual checks revealed errors in pre-sale address assessments.
ZachXBT praised WLFI for their proactive approach compared to other teams, such as Circle, but cautioned that false positives could lead to unjust blacklisting and significant reputational damage. He stressed the need for a balanced approach to ensure that any false positives are swiftly addressed to prevent harm to affected parties.
ZachXBT Warns of Risks in Mislabeling High-Risk Crypto Addresses
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