There have been a lot of scam-like tokens detected from Binance’s BNB Chain, which Solidus Labs, who monitors 12 leading blockchains, has detected sometimes. According to the report, the proportion of BEP-20 tokens that exhibit fraudulent characteristics on the BNB Chain is close to 12%, but the number is 8% on Ethereum.
New Threat Intelligence Tool
As part of its commitment to maintaining the integrity of the cryptocurrency market and monitoring risk, Solidus Labs has announced that they have launched a new real-time threat intelligence tool for DeFi and Web3 that will enable anti-money laundering teams to proactively and preemptively address one of its biggest challenges: smart contract scams.
By relying on this solution, DeFi can introduce a paradigm shift in the way it monitors risk, complies with compliance rules, and detects AML crimes. Until now, crypto scams have been identified and blocked largely through retroactive measures rather than by proactively identifying them.
With the capability of covering Ethereum as well as 11 other chains, including BNB and Polygon, Solidus’ Web3 AML redefines what companies operating in the digital asset space need to do in order to comply with current anti-fraud and anti-money laundering laws.
Through the use of this new capability, Solidus will be able to identify at scale a wide range of smart contract scams affecting the Ethereum ecosystem, from the moment their malicious code is deployed to the moment their illicit funds reach centralized exchanges and beyond, in an instant and accurate manner.
In other words, it empowers crypto risk and compliance teams to act in a timely manner when scams are deployed in an effort to protect users and prevent the acceptance of illicit funds. In addition, the solution is also capable of flagging the scams to users or limiting access to them on decentralized applications and exchanges running those protocols through their user interfaces, enabling these entities to prevent users from falling victim to such scams.
Several emerging crypto-native market abuse typologies have been identified as a result of scam token smart contracts, such as Rug pulls, phishing attacks, and the impersonation of tokens. As the production of scam token smart contracts can be automated and easily repeated, serial scammers are able to quickly carry out thousands of small value attacks without raising the red flags of regulators, exchanges, and law enforcement agencies.
The development of Solidus’ Web3 AML solution, as well as the DeFi-specific typologies it addresses, was a combination of the company’s category-defining crypto-native market surveillance capabilities and knowledge combined with cutting-edge smart contract scanning technology and proprietary datasets compiled on and off-chain.
The new addition to Solidus HALO, which is the firm’s crypto-native solution suite for strengthening market integrity, Solidus Web3 AML, is one important component. A total of 1 trillion events are monitored each day by HALO across more than 150 markets, protecting over 25 million retail and institutional entities across the world.
