One of the biggest worries for crypto investors and people interested in trading cryptocurrencies is being victims of the many scams taking place in the crypto space. Although the crypto industry has grown fast in terms of the user base, scams of different magnitude continue to hit the market too.
According to reports, Crypto money laundering grew from $6.6 billion to $8.6 billion between 2020 and 2021, with the biggest source of illicit funding coming from scams aimed at collecting crypto from unsuspecting users.
To curb these excessive scams, A number of major crypto firms have joined forces and launched a new, multi-chain scam reporting platform. TRM Labs, Circle, Solana Foundation, the Aave Companies, Hedera, Binance.us, and Civic announced last week “the launch of a new community-powered scam reporting platform, Chainabuse.”
Blockchain Intelligence firm TRM Labs shall be operating the scam reporting platform Chainabuse. Chainabuse will empower anyone in the crypto economy to warn others about the scam.
It will also report any other hacks or fraudulent activities, as they encounter them. It is true that one of the biggest challenges with reporting crypto scams is the timing of the report. Chainabuse will seek to facilitate swift reporting of such incidents, thereby making it safer for traders to go about their businesses.
The announcement also detailed the expected function of the platform as it explained that 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.
The power of any given industry lies in the power of its community. Thus, big players coming together to fight the bad actors is a much more prudent step. The cost-free device makes it possible for crypto customers, targets of economic criminal activities, and also crypto companies to take an energetic function in making the crypto community a more secure area to run.
Currently, customers can submit records under Bitcoin, Ethereum, Solana, Polygon, Hedera, Binance Smart Chain, and alsoTron Reports can be upvoted and also downvoted. Other platform customers can additionally leave remarks to add added info.
The announcement describes how the platform will operate, stating that “reports on the same addresses or entities are consolidated and housed in a searchable database, which anyone can use proactively to check addresses or projects before engaging with them”
The platform, launched three days ago has now gathered over 800 reports on the platform with 342 of these reports concerned with Ethereum while over 100 are related to Ukraine’s crypto fundraising campaign scams as of the time of writing.
Chainabuse explained that it does not file reports with law enforcement on behalf of users, emphasizing that the purpose of filing a report is primarily to alert others to the scam.
Hopefully, Chainabuse will help bring a drastic reduction to crypto scams as traders will now be able to hop on the platform and conduct a search on addresses or projects they plan to deal with.
