Source of Funds

Source of funds is the origin of the particular assets a customer is transacting with, as distinct from the customer's overall source of wealth.

Establishing source of funds answers where the exact value in a transfer came from, which underpins due-diligence and enhanced-due-diligence decisions. In crypto, the on-chain history offers direct evidence: an address's prior transactions reveal whether funds trace to an exchange, a mining pool, a mixer, or a sanctioned entity. Our multi-hop fund-flow tracing reconstructs that history, and the exposure breakdown attributes portions of a balance to categories and hop distances, turning source-of-funds inquiry into a reproducible on-chain analysis rather than a reliance on customer attestation alone, and feeding directly into the address risk-score.