I don't know for sure however, a look at the entity's behavior suggests that it might try to determine if a certain node is reachable at a certain IP address by linking to their Bitcoin address.
But is this method possible by determining its bitcoin address that simple. Its clearly an attempt to do that and if forced thats a violation of privacy. Im wondering why the government wouldnt try to use a platform for this to hunt those scammers. Maybe it will be helpful but this will also be a chaos for those people who only eant their identity hidden.