Key takeaways:
- 29,120 cryptocurrency addresses were analyzed as part of Operation Lighthouse. Investigators obtained 14,300 leads and identified more than 7,700 suspicious accounts in 125 countries.
- The operation shows that cryptocurrencies do not provide full anonymity. Blockchain analysis combined with data from exchanges and payment operators may allow determining the identity of users.
- “Lighthouse” may bring further account blockades, arrests and criminal proceedings, and some of the effects of the investigation may not be visible until 2027.
Thousands of addresses under the microscope
Operation “Lighthouse” was announced on August 25 by Chainalysis, a company specializing in the analysis of blockchain data. As part of the campaign, 29,120 cryptocurrency addresses associated with over 100 platforms, forums and material distribution networks related to e.g. child pornography, operating both on the open Internet and the dark web, were analyzed.
The result was 14,300 investigative leads concerning 11 exchanges and payment services. Private sector partners also identified over 7,700 suspicious accounts. People suspected of being involved in illegal activities were identified in 125 countries.
Representatives of law enforcement agencies, cryptocurrency companies and non-profit organizations participated in the operation. The institutions involved included: Europol, the Australian Federal Police, the Royal Canadian Mounted Police and the UK National Crime Agency.
The operation also shows why the belief in the complete anonymity of cryptocurrencies can be deceptive.
Transactions on public blockchains like Bitcoin leave a permanent trace. Although the wallet address itself does not contain the name and surname of the owner, analysis of the flow of funds allows you to create maps of connections between subsequent addresses.
If such a trace is then combined with information from the stock exchange, payment operator or other sources, it becomes possible to determine the identity of the person using a given wallet.
It is the combination of blockchain analysis with off-chain data that allows you to turn a seemingly anonymous address into a concrete lead for investigators.
These are not arrests yet
Chainalysis emphasizes that the operation numbers represent addresses, accounts and investigative leads, not the number of people arrested or convicted. Each lead must be verified by the appropriate authorities. Only further investigation activities may lead to charges being laid and legal proceedings to commence.
Participants in the operation also identified 16 people who were already registered sex offenders. Two companies participating in the campaign also named at least 150 people.
Blockchain is an increasingly important tool for investigators
“Lighthouse” is not the first operation showing the possibilities of analyzing cryptocurrency financial flows.
An earlier operation against the Kidflix platform led to the identification of approximately 1,400 suspects and 79 arrests. The website was expected to attract approximately 1.8 million users between April 2022 and March 2025. Analysis of cryptocurrency transactions allowed investigators to recreate part of the platform’s payment infrastructure.
The effects may be visible in 2027
Chainalysis expects the information obtained will lead to further account bans, arrests and criminal prosecutions. Some of the effects of the operation may not be visible until 2027.
The action shows a broader change in the approach to cryptocurrencies. Blockchain, which for years has been presented as a tool providing users with anonymity, is increasingly becoming a source of data for law enforcement agencies that allows them to reconstruct the flow of money and identify participants in criminal networks.
With the development of analytical tools, the line between an “anonymous” transaction and a transaction that can be linked to a specific person is becoming thinner.
