Use Chainalysis KYT v2 to pre-screen a withdrawal address before executing a transfer

Steps

1. Before initiating a withdrawal, register the destination address for pre-screening: POST https://api.chainalysis.com/api/kyt/v2/users/{userId}/withdrawaladdresses with body: {"network": "BITCOIN", "asset": "BTC", "address": "<destination_address>"}
2. Retrieve the address risk rating: GET /api/kyt/v2/users/{userId}/withdrawaladdresses/{address}?network=BITCOIN; check the rating (LOW/MEDIUM/HIGH/SEVERE) and cluster.name fields
3. Apply your withdrawal policy: block SEVERE and HIGH-rated addresses; queue MEDIUM for enhanced review; allow LOW with audit logging
4. If allowed, proceed with the withdrawal and register the completed transfer as a sent transfer: POST /api/kyt/v2/users/{userId}/transfers with {"direction": "SENT", "transferReference": "<txHash>:0", "network": "BITCOIN", "asset": "BTC", "amount": <amount>}
5. KYT updates risk for sent transfers on an ongoing basis but does not retroactively update withdrawal address records — use the sent transfer API to track post-broadcast risk changes
6. Store Chainalysis rating and timestamp with each withdrawal record; most AML programs require a pre-send screening log retained for 5+ years