Virtual Asset Wallet Risk Query System

The patent introduces a wallet address risk assessment system as an intermediary between the sender and recipient. This system automatically evaluates the risk level of recipient wallet addresses using multiple data sources (blockchain analysis, exchange data, law enforcement databases) and provides risk scores before transactions occur, allowing exchanges to block or flag high-risk transfers without manually reviewing each address

The patent implements preliminary risk assessment of wallet addresses before transactions are executed. By pre-evaluating recipient addresses against known criminal patterns, blacklists, and anomaly detection algorithms, the system identifies and flags high-risk addresses in advance, enabling proactive prevention of fraudulent transfers rather than reactive blocking after the fact

The patent combines multiple risk assessment data sources and methodologies into a unified system. It integrates blockchain transaction analysis, exchange-specific data, law enforcement blacklists, and anomaly detection algorithms into a single risk scoring mechanism, allowing exchanges to benefit from comprehensive security without building each component separately

The patent segments the risk assessment system into distinct functional modules: data collection from multiple sources, blockchain transaction analysis, anomaly detection algorithms, risk scoring calculation, and decision-making interfaces. This modular architecture allows exchanges to implement comprehensive security while maintaining manageable system complexity through clear separation of concerns