Across 12 leading blockchains, an average of 15 malicious smart contracts are created per hour. A new token programmed for fraud appears roughly every four minutes, according to Solidus Labs researchers.
Today we’re thrilled to unveil Solidus Threat Intelligence: a powerful, first-of-its-kind Web3 AML tool.
Read the press release: https://t.co/5hUW9MGt2U
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— Solidus Labs (@Solidus_Labs) October 27, 2022
The blockchain-risk monitoring firm unveiled a new on-chain tool in its Threat Intelligence suite. The solution is designed to aid anti-money-laundering (AML) efforts and, in real time, proactively address one of DeFi and Web3’s major problems: smart-contract fraud.
Solidus Labs’ experts, using Web3 AML, conducted a retrospective analysis across 12 tracked blockchains, including Ethereum, Polygon and BNB Chain. They found as of October 10:
- a total of 188,525 malicious smart-contract operations (an average of 15 new per hour);
- fraud indicators in 12% of BEP-20 tokens on the BNB Chain and 8% of ERC-20 coins on Ethereum;
- A conservative estimate puts the value of ETH tied to frauds that have passed through centralized, regulated exchanges at $910 million.
The smart contracts of fraudulent tokens can be deployed automatically and easily replicated, Solidus noted. This enables serial scammers to carry out thousands of attacks with small sums that remain ‘below the radar’ for trading platforms, regulators, and law enforcement.
“Although some of the major scams and frauds make the news, such as the famous token Squid Game, which, according to estimates, cost users about $3 million in losses, the full picture we have shows that the vast majority of these scams go undetected,” said Katie Craninger, Solidus’s vice president of regulatory affairs.
In developing the solution, the company combined its own know-how with smart-contract scanning capabilities and on-chain and off-chain data sets. The latest technology was enhanced by the acquisition of Token Sniffer, Solidus noted.
In May, the company closed a Series B funding round worth $45 million.
Earlier, Solidus raised $20 million and $15 million in Series A and strategic financing rounds, respectively.
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