Elliptic compliance integration

Elliptic Integration for Compliance

Elliptic is a Chainalysis competitor with several technical advantages: deeper DeFi coverage, cross-chain tracing (fund tracking between chains via bridges), and Solana support. The API differs from Chainalysis in structure.

Elliptic Lens API (wallet screening)

class EllipticClient {
  private readonly BASE_URL = "https://aml.elliptic.co/v2";
  
  async screenWallet(address: string, asset: string): Promise<EllipticWalletRisk> {
    const response = await this.post("/wallet/synchronous", {
      subject: {
        asset,
        type: "address",
        hash: address,
        blockchain: this.getBlockchain(asset),
      },
      type: "wallet_exposure",
      customer_reference: address,
      behaviour_classification: true, // includes cluster behavior data
    });
    
    return {
      riskScore: response.risk_score,       // 0-10 (Elliptic has different scale!)
      riskBand: response.risk_band,         // "low" | "medium" | "high" | "very_high"
      exposures: response.exposures,        // breakdown of direct and indirect exposure
      entities: response.entities,
      behaviours: response.behaviours,
    };
  }
  
  async screenTransaction(txHash: string, asset: string): Promise<EllipticTxRisk> {
    return this.post("/transaction/synchronous", {
      subject: {
        asset,
        type: "transaction",
        hash: txHash,
        blockchain: this.getBlockchain(asset),
      },
      type: "indirect_exposure",
    });
  }
  
  private getBlockchain(asset: string): string {
    const map: Record<string, string> = {
      ETH: "ethereum",
      BTC: "bitcoin",
      USDT: "ethereum", // or tron
      SOL: "solana",
      BNB: "bsc",
    };
    return map[asset] || asset.toLowerCase();
  }
}

Risk Score Normalization

Elliptic uses a 0-10 scale, Chainalysis uses 0-100. When using both providers, normalization is needed:

function normalizeRiskScore(score: number, provider: "chainalysis" | "elliptic"): number {
  if (provider === "elliptic") return score * 10; // 0-10 → 0-100
  return score; // chainalysis already 0-100
}

// Risk band mapping for unified decision making
function getRiskDecision(score: number): "allow" | "review" | "block" {
  if (score >= 70) return "block";
  if (score >= 40) return "review";
  return "allow";
}

Cross-chain Tracing

Elliptic's advantage: tracks funds through bridges (Wormhole, Stargate, LayerZero):

// If funds came through a bridge, Elliptic tracks the origin chain
async function checkCrossChainExposure(
  address: string,
  inboundTxHash: string
): Promise<CrossChainRisk> {
  const walletRisk = await elliptic.screenWallet(address, "ETH");
  
  // exposures.indirect can show risk through bridge
  const bridgeExposures = walletRisk.exposures.indirect.filter(
    e => e.category === "bridge" && e.riskScore > 40
  );
  
  if (bridgeExposures.length > 0) {
    // Request details for each bridge hop
    for (const exp of bridgeExposures) {
      const originRisk = await elliptic.screenWallet(exp.sourceAddress, exp.sourceAsset);
      if (originRisk.riskBand === "high" || originRisk.riskBand === "very_high") {
        return { hasHighRisk: true, originChain: exp.sourceBlockchain };
      }
    }
  }
  
  return { hasHighRisk: false };
}

Elliptic integration with cross-chain tracing and normalized risk scoring for dual-provider system — 1-2 weeks.