Crypto market integrity and risk monitoring leader Solidus Labs announced the launch of a new real-time on-chain Threat Intelligence tool, designed to help anti-money laundering (AML) teams proactively and preemptively address one of DeFi and Web3’s biggest challenges – smart contract scams. The solution represents a paradigm shift in DeFi risk monitoring, compliance and AML methodologies, which have so far taken a largely retroactive approach to identifying crypto scams and blocking their money flows.
“Sunlight is the best of disinfectants. This new product is part of Solidus’ vision – simplifying risk in crypto and decentralized finance, shedding light on manipulative and abusive behavior and enabling the rating of various assets and products”
Covering Ethereum and 11 other chains like BNB and Polygon, Solidus’ Web3 AML redefines the compliance approach companies in the digital asset space should adopt to adhere to current anti-fraud and anti-money laundering laws. With this new capability, Solidus enables immediate and accurate detection at scale of a wide and growing array of smart contract scams across the Ethereum ecosystem, from the moment their malicious code is deployed, until their illicit funds reach centralized exchanges, and beyond. It therefore empowers crypto risk and compliance teams to act the moment scams are deployed, to protect users and prevent the acceptance of illicit money flows. The solution also enables entities like decentralized applications and exchanges running on those protocols to flag them for users or limit access to such scams through their user interfaces.
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This new risk monitoring technology also provides the most comprehensive coverage and first real-time analysis of smart contract scams across the ecosystem, and the most complete on and off-chain view of the current state of crypto scams and market integrity.
Scam token smart contracts — cryptocurrencies that have been hard-coded to steal investors’ funds — contribute to a growing list of crypto-native market abuse typologies, including rug pulls, phishing attacks and token impersonations. Scam token contracts can be automatically deployed and easily repeated, allowing serial scammers to rapidly execute thousands of small value attacks without raising red flags among regulated exchanges, regulators and law enforcement.
Over the past two years, in light of the growing public and regulatory concerns with high rate of theft and abuse in decentralized services, and a clear and growing need for DeFi risk mitigation tools, Solidus has intensified its R&D focus on the bleeding edge realm of on-chain market integrity.
“Sunlight is the best of disinfectants. This new product is part of Solidus’ vision – simplifying risk in crypto and decentralized finance, shedding light on manipulative and abusive behavior and enabling the rating of various assets and products,” says Asaf Meir, Solidus’ founder and Chief Executive. “HALO Threat Intelligence is a major step toward de-risking DeFi. We’re delighted to provide this Web3 AML solution and the unprecedented level of transparency and proactiveness it enables, as the crypto industry continues and expands its effort to combat smart contract scams. This launch is the result of hundreds of hours of work by our R&D team alongside our clients, industry partners and regulators who are on the front line of enabling safe and regulated crypto services.”
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