Crypto industry leaders join forces to come up with a new Multi-Chain Scam Reporting Tool, Chainabuse, to effectively fight against frauds.
Chainabuse is a community-powered scam reporting platform which empowers anyone in the crypto economy to warn others about scams, hacks or other frauds as they encounter it.
The free tool enables crypto users, victims of financial crimes, and crypto businesses to take an active role in making the crypto ecosystem a safer place to operate.
Chainabuse is a collective approach of several industry heavyweights, including TRM Labs, Circle, Solana Foundation, The Aave Companies, Hedera, Binance.US and Civic.
Despite recent instability, the cryptocurrency business has developed significantly in recent years, reaching a market valuation of $3 trillion in 2021. However, as popularity has grown, so has the number of hacks and scams aimed at crypto consumers.
According to a study by Elliptic, losses due to theft and fraud in DeFi space are accelerating, with losses totaling over $10.5 billion in 2021 compared to $1.5 billion in 2020.
Although scam alerts are frequently posted on social media sites like Twitter and Discord, it can be impossible to verify, aggregate, or track these posts over time.
Chainabuse is the first of its kind — a multi-chain reporting tool that allows crypto users to report illegal activities to a public forum where others can upvote, downvote, or post comments to add more information.
Reports on the same addresses or entities are grouped together and stored in a searchable database that anybody may use to double-check addresses or projects before engaging with them.
Suppose, you are not sure if it is safe to make a crypto transaction, the tool will help you. you just need to search for addresses or URLs to find if they are related to scam reports.
Joe McGill, former U.S. Secret Service and Postal Investigator, now part of the global investigations team at TRM and one of Chainabuse’s chief architects, said:
“In numerous recent attacks and instances of malicious activity, we have already seen the crypto community’s potential to come together to root out bad actors and help protect each other. Chainabuse was designed to make it easier for more people to play an active role in advancing that culture and ensure that the spirit of community remains one of crypto’s most powerful attributes.”
The platform is powered by the crypto community and supported by leading crypto businesses, protocols, and foundations committed to making the crypto ecosystem a safe and trusted environment. Chainabuse provides partner crypto platform operators with a consolidated view of illicit activity reports from users, allowing them to identify prevalent, legitimate complaints and launch investigations more quickly.
Mandeep Walia, Chief Compliance and Risk Officer at Circle, said:
“Chainabuse significantly enhances the depth and effectiveness of our compliance monitoring program by leveraging an aggregated view of the distributed efforts of the entire crypto community.”
The platform is now live with hundreds of reports available to search across seven blockchains – including over 100 scams related to Ukraine crypto fundraising campaigns and over 20 phishing domains and Twitter profiles targeting investors in a popular new gamified metaverse project.
This is not the first time industry leaders have joined together to overcome the challenges that can be a hindrance in the growth of the blockchain and crypto industry.
In February, a group of leading crypto firms operational in the U.S., including Coinbase, Fidelity and Robinhood, came up together to support US Anti-Money Laundering Group.
Last year, a new private-sector initiative known as Crypto Climate Accord was launched with an aim to bring the cryptocurrency industry fully renewable by 2030, or sooner. Many crypto companies are now part of this initiative.
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