ChainAnalysis is pseudoscience, their software isn't audited, and reportedly flags wallets because they have interacted with on-chain exchanges. I have used their software, it's comically bad.
Their business model essentially revolves around lobbying for more stringent AML rules, to then sell their useless software with a false positive rate of >50%. Same happens with compliance software for banks, by the way. And surveillance software designed to scan your devices for CSAM content.
AML in general is very problematic, as it's a clear inversion of the principle that an individual is innocent until proved otherwise. I understand that there's a lot of crooks, grifters and nefarious individuals out there, but now the cure is killing society.
People living with marginal lifestyles are unbanked (ask any prostitute about what's in her shoeboxes), regular people have to submit very private data to random "compliance officers" and pray that it won't fall into the wrong hands, bank accounts get frozen because there was a 20€ wire from a foreign country, etc etc... And much more!
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