A high-risk wallet is a crypto wallet that has been connected to illegal or suspicious activity on the blockchain - for example:
Gambling or betting platforms
Fraud, scam, or stolen funds
Darknet marketplaces
Mixing or anonymizing services used to hide transaction sources
Sanctioned or blacklisted wallets or countries
Our compliance system automatically checks every wallet address you send funds to. If that wallet has ever been involved in such activity - even several steps earlier - it becomes marked as high-risk.
How the system detects it
CityPay uses global blockchain-analysis tools, that trace all blockchain transactions.
If any wallet has received crypto from a high-risk or illegal source, that connection remains recorded forever on the blockchain.
As a result, the wallet is automatically classified as high-risk, and any further transactions involving it may be temporarily frozen or rejected.
Why it matters
If you try to send or receive crypto from a high-risk wallet, our system may pause or block the transaction in line with AML/CFT (Anti-Money Laundering and Counter-Terrorism Financing) regulations.
This ensures your funds and account remain safe and compliant.
Tip to stay safe
Use only trusted and verified wallets or exchanges
Avoid accepting funds from unknown sources.
Do not interact with gambling, mixer, or unverified wallets.
Always double-check the source of funds before making a transfer.