Arkham CEO Defends ‘DOX-to-Earn’ Program, Says Public Blockchains ‘Worst’ for Privacy

“Publicly available blockchains are probably the worst possible way of keeping one’s private information private,” said Arkham CEO Miguel Morel.

AccessTimeIconJul 11, 2023 at 6:43 p.m. UTC
Updated Jul 14, 2023 at 2:59 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Crypto analytics platform Arkham is in the midst of a public-relations firestorm this week, with a vocal contingent of the crypto community expressing outrage on Twitter over a program unveiled Monday that incentivizes people to reveal the identities behind otherwise anonymous or pseudonymous blockchain addresses.

During a Twitter Spaces on Tuesday, Arkham CEO Miguel Morel batted back at critics, arguing that a lack of privacy is inherent to how most blockchains operate today.

“Publicly available blockchains are probably the worst possible way of keeping one's private information private,” Morel said on the space, which was hosted by Twitter personality Mario Nawfal. “You are literally making transactions which you are broadcasting to a decentralized network of millions of people, all of whom can look on-chain in order to see which transactions are being broadcast.”

Arkham’s program, which critics sarcastically termed, “DOX-to-Earn,” will allow anyone to set “bounties” – rewards for people who can uncover and share the identities behind a given crypto address.

Currently a free platform, Arkham markets the bounty program as a way for traders to gather financial data. The firm has also said that the bounties might be used to root out perpetrators behind crypto thefts and exploits.

Privacy and blockchains

Privacy is frequently cited as a core principle within the blockchain community, and privacy advocates like Edward Snowden have gone so far as to promote projects like Zcash that let users make anonymous financial transactions.

When Arkham announced its new bounty program and changed its tagline to, “Deanonymizing The Blockchain,” the company – perhaps purposely – ruffled some feathers.

In responding to the backlash, Morel pointed to the widely-held misperception that all blockchains are inherently private. Not only is this untrue, but – as the Arkham CEO points out – privacy is, in reality, a core weakness of blockchains like Bitcoin and Ethereum as they’re typically used today.

Unless people use a mixer program like Tornado Cash – the Ethereum-based transaction-anonymizing service that’s been blacklisted by the U.S. government – the wallet addresses associated with a crypto transaction can be viewed by anyone with an internet connection.

“Speed, ease of use, actually owning your own assets, being able to make cross-border payments instantly – these are all amazing reasons for using cryptocurrency,” said Morel. “Trying to be completely anonymous is not one, and this is something that, you know, many people do not understand.“

Making money off of information

Not everyone on Tuesday’s Twitter space was swayed by Morel’s blockchain privacy defense. A common criticism levied against Arkham on the Twitter space – and in the lead-up to it – was around how the platform would judge the accuracy or relevance of labels added to the platform. How would the platform prevent regular people from having their identities exposed? Especially troublesome would be misidentification.

Morel said Arkham would not allow all bounties or address labels onto its platform: “It’s not a completely free market. It’s not like anybody can, you know, post any piece of information.”

“The main customer of Arkham is traders. It's hedge funds. It's people making money off of information about who's buying and selling large positions of a particular token,” he said. “Nobody's going to be posting info about somebody's dog. Nobody cares, nor is it going to get approved.”

When asked to expand on the rules Arkham would use to guide its moderation decisions, Morel said: “We’re gonna explain everything and it’ll all be written out in the coming days.” He added that audience members can read Arkham’s whitepaper for initial details, and said his ultimate plan would be to “decentralize” bounty moderation decisions to a wider community.

Ran Neuner, a crypto commentator and TV host, was among the most critical participants in Arkham’s Twitter discussion. “My issue is not with the system. My issue is with your company managing the data,” he told the Arkham CEO.

Arkham, which has been live for less than a year, has already been at the center of multiple controversies. In conjunction with this week's blowback, the company was accused of leaking user email addresses.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Sam Kessler

Sam is CoinDesk's deputy managing editor for tech and protocols. He reports on decentralized technology, infrastructure and governance. He owns ETH and BTC.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.