Checking counterparties and addresses against government sanctions lists, such as the US Treasury’s Specially Designated Nationals list.
Why it matters
Sanctions authorities designate blockchain addresses as well as people and entities. The Ronin theft is an example: OFAC added an address associated with it to the SDN list, which is also the basis on which the attribution is reported.
Not advice. Definitions are for understanding, not instruction. Nothing here is financial, legal, tax or security advice.