This paper introduces the concept of an ‘Accountable Wallet’ to establish trust in decentralized finance. Our methodology reverses the traditional approaches, which primarily focus on preventing and penalizing illicit activities; we propose a framework where legitimate wallets actively prove their legitimacy to the counterparty before the transactions. Key elements of the proposed framework include proof of the legitimacy of wallet holders, wallet conducts, and crypto asset provenances. The paper explores and summarizes the implementation of this methodology to issue these proofs. The paper outlines comprehensive methods to ensure transaction legitimacy, including Chained Credentials for crypto asset provenance and approaches for evaluating wallet trustworthiness. The methodology cultivates an economy where transactions are exclusive to wallets that can prove their legitimacy. Consequently, illicit wallets in decentralized finance will face substantially restricted liquidity compared to legitimate investors. This restriction is a realistic punitive measure for malicious actors who have eluded penalization by traditional approaches. The proposed methods transcend jurisdictional limitations, offering a comprehensive framework for legitimacy verification.