Defi crypto monitor

New platforms are allowing users to lend and borrow cryptocurrencies for profit — and threatening to make traditional financial intermediaries obsolete. Of all of the disruptive possible uses of blockchain, decentralized finance or DeFi might be the one most likely to bring this technology to a wide audience — and challenge the established finance industry in the process. By using self-executing contracts on newly formed marketplaces, DeFi allows users to stand in place of large institutions to loan and borrow money to each other, and to earn interest and fees by doing so. There is significant risk inherent these crypto markets, but DeFi offers a less volatile and more accessible point of entry than other markets — and may just have enough appeal to bring blockchain into the mainstream. In the tradition of disruptive innovations — as Clayton Christensen envisioned them — DeFi can be the evolution of blockchain technology that might launch it into mainstream. The premise of DeFi is simple: Fix the longstanding inefficiency in crypto finance of capital being kept idle at a nonzero opportunity cost.

We are searching data for your request:

Defi crypto monitor

Wait the end of the search in all databases.
Upon completion, a link will appear to access the found materials.

Content:

• Decentralized finance (DeFI) Offshore accounts evolution? Part II
• Select Country
• New Jersey Orders DeFi Platform to Cease Offering Interest-Bearing Crypto Accounts
• Crypto revolution is here to stay. What about India's regulatory stance
• {{ $t("HomeTitle") }}
• Digital Assets, Blockchain Technology and Cryptocurrencies
• Digital Asset Compliance & Risk Management
• Strategies
• Florida Office of Financial Regulation Issues DeFi Advisory
• How do you get involved in DeFi?

WATCH RELATED VIDEO: Why Am I So Bullish on Fantom? - Technical Analysis and More

Decentralized finance (DeFI) Offshore accounts evolution? Part II

Transaction screening and risk monitoring using machine learning and graph analytics. Get deeper insights on market activities and user behaviors. Business intelligence platform for graph data. Pre-transaction monitoring solution for compliance teams. API for risk scores based on crypto news sources. An investigative report explaining what cryptocurrency exit scams and DeFi rug pulls are, how they are carried out, and the tracing and investigations of such crypto frauds.

Decentralised Finance or DeFi refers to financial applications built on top of blockchain systems with no central immediaries. The flood in capital also makes it a prime area for hackers and scammers to operate. Many of the recent investigations which Cylynx conducted are also linked to the use of DeFi smart contracts to hide and launder funds. In this advisory report, we discuss how exit scams are conducted and how investigators can trace and monitor such activity on the blockchain.

Both exit scams and DeFi rug pulls are crypto frauds. Exit scams happen when cryptocurrency promoters disappear with investors' money during or after an initial coin offering ICO. DeFi rug pulls are a new form of exit scam whereby crypto developers abandon a project and run away with investors' funds by taking away buy support or Decentralised Exchange DEX liquidity pool from the market.

Rug pulls typically occur in the DeFi ecosystem, especially on decentralised exchanges DEXs such as Uniswap or Sushiswap, as fraudulent token creators are able to create and list tokens for free without audit.

Scammers can create a token on a DEX and pair it with a leading cryptocurrency such as Ethereum. This drives the coin's price to zero, leaving investors with nothing but virtually worthless coins. If the white paper is written in an ambiguous and unclear manner, it is often a red flag that it might potentially be an exit scam. Although highly promoted ICOs may not necessarily be a scam, do exercise caution when deciding to invest in projects which are heavily promoted.

This is because less credible founders tend to rely on promotions and advertising to attract investors. Verify the number of token holders via a block explorer tool like Etherscan.

Check whether it is listed and traded on other popular exchanges. A quick search on Coingecko can reveal more information about the coin. In , the USD value locked in DeFi has grown tremendously, increasing money laundering risks as hacked DeFi protocols form the bulk of crypto thefts. This flood in capital has attracted many hackers and scammers, as seen in the rise of exit scams and DeFi rug pulls. Earlier this year, Thodex — a Turkish cryptocurrency exchange with about , users — was accused of pulling an exit scam.

While they have been audited previously, the team swapped the safe and audited contracts and replaced them with malicious contracts that enabled them to steal investor funds.

On its official Telegram channel, the team claimed that its smart contract vault was compromised. These are real incidents with millions and billions of dollars lost and thousands of investors affected. Given the rise of exit scams and DeFi frauds, we need efficient and reliable ways to detect and investigate such frauds. Be careful guys. Rug pulls are getting more and more frequent. There are multiple fraudulent scam TMPL tokens created. Looking at the transfers log, we noticed that there are only 20 transactions and 10 holders.

Most of the activity happened within a span of 4 days. The Uniswap - TMPL smart contract given by the linked address reveals a similar scam operation but of a much larger scale. To verify that the withdrawal actually lands the token creator with more ETH than he had initially started off with, we can view the token transfer log for transaction 0x0d55ef.

Not surprisingly, the scammer ends up with more ETH tokens which he transferred to other accounts and left the pile of useless TMPL tokens remaining in his account. While the examples cited above highlights how scammers exploit DeFi platforms to sell fraudulent tokens, variants of such methods are also used to hide illicit sources of funds.

By swapping into other less well-known tokens possibly even created by the hacker , these individuals aim to evade attempts by cryptocurrency monitoring solutions to pick up the trail of their illicit gains. Investigations by Cylynx also reveal how suspected money launderers trade illiquid assets on DeFi platforms to conceal their sources of funds. Identifying and tracing such activities on the blockchain requires the ability to parse through blockchain records and make sense of transaction activities.

In the cryptocurrency space, this is made more difficult due to the ease of creating multiple wallets and moving tokens around.

At Cylynx, we help cut down tedious investigation work and automate the tracing process. Through a combination of our graph propagation algorithm and on-chain forensics, we are able to deliver tracing reports on blockchain activities much more efficiently. Our reports also provide a clear audit trail of the source of funds which can be traced back to the blockchain.

This gives law enforcement agencies the confidence to use our reports as part of their investigative work. For exchanges and other virtual asset service providers VASPs which require real-time screening and alerts, our Transaction Monitoring solution allows you to prioritise risk cases and improve screening efficiency.

We provide a risk-based approach to Cryptocurrency monitoring to help VASPs comply with regulatory requirements. This includes screening sources of funds by filtering and rapidly identifying transactions from sources of concern, detecting red flags associated with suspicious transactions with on-chain analytics, and adverse news coverage. Frauds and scams are not uncommon even in stock markets that are well-regulated and established. The unregulated nature of the cryptocurrency space, coupled with the flood of capital in the DeFi space, increases the risk of such exit scams and rug pulls.

While we have discussed red flags and how to spot these exit scams and rug pulls, these are insufficient as seen in the case of Compounder Finance where they have been audited prior to the rug pull.

With thousands of investors and millions and billions of dollars at stake, an efficient and effective investigative solution is required to counter the increasing risk of crypto fraud. At Cylynx, we offer graph propagation algorithms, on-chain forensics and monitoring solutions to make the investigative process more efficient, allowing an investigation team to prioritise risk cases, and improve screening efficiency.

Get in touch with us here for a demo of our investigative and monitoring solutions. Structuring of Funds. Doctored identities. What are the AML red flags that you should be aware of?

A summary of money laundering and terrorist financing indiciators highlighted by the FATF. The structure of a blockchain fits very naturally into a graph representation, with addresses being the nodes and transactions being the edges of a graph.

By modelling the blockchain as a graph, we can get a comprehensive view of the activities that are on-going and how the different entities are related to each other. Use Cases. Fraud Detection Transaction screening and risk monitoring using machine learning and graph analytics. Blockchain Forensics Get deeper insights on market activities and user behaviors. Motif Business intelligence platform for graph data. Transaction Monitoring Pre-transaction monitoring solution for compliance teams.

What are exit scams and DeFi rug pulls? How are exit scams and rug pulls carried out? How to Spot a Rug Pull? Ambiguous Cryptocurrency White Paper If the white paper is written in an ambiguous and unclear manner, it is often a red flag that it might potentially be an exit scam. Unrealistic Projections of Returns As with other scams, if something seems too good to be true, it probably is.

Large Spendings on Promotion and Marketing Although highly promoted ICOs may not necessarily be a scam, do exercise caution when deciding to invest in projects which are heavily promoted. Thodex Earlier this year, Thodex — a Turkish cryptocurrency exchange with about , users — was accused of pulling an exit scam. The sequence of events can be summarised as follows: Scam token creator adds liquidity of the newly hyped up TMPL token to a DeFi platform such as Uniswap circled in red.

As price of the token rises, and more users participate in the swap due to FOMO fear of missing out. Scam token creator removes liquidity from the platform and takes gains on the valuable token circled in red.

Users are left holding worthless tokens with no place to withdraw or cash out. Rinse and repeat. The use of smart contracts to launder illicit funds While the examples cited above highlights how scammers exploit DeFi platforms to sell fraudulent tokens, variants of such methods are also used to hide illicit sources of funds.

How Cylynx helps in investigations Identifying and tracing such activities on the blockchain requires the ability to parse through blockchain records and make sense of transaction activities. Conclusion Frauds and scams are not uncommon even in stock markets that are well-regulated and established. Efficient Large Graph Label Propagation Algorithm The structure of a blockchain fits very naturally into a graph representation, with addresses being the nodes and transactions being the edges of a graph.

Select Country

Interest rates from the top cryptocurrency lending protocols and crypto banks — updated every hour! To stay up with all things DeFi, sign up for our newsletter — delivered every Friday with a recap of top stories from the past week. DeFi leverages composability — or the ability for applications to integrate and build on top of one another — to offer unique products and services through the use of smart contracts. Here at DeFi Rate, we seek to report on the projects worth keeping an eye on.

New Jersey Orders DeFi Platform to Cease Offering Interest-Bearing Crypto Accounts

It is easy for those with the right technical skills to create new DeFi tokens and get them listed on exchanges, and many are unaudited. Rug pulls have emerged as the go-to scam of the DeFi ecosystem, Chainalysis said, accounting for 37 per cent of all cryptocurrency scam revenue in , versus 1 per cent in But there is no doubt going to be more rug pulls over the years. These trends will continue. When Commonwealth Bank said it would add 10 crypto coins to its banking app this year , it appointed Chainalysis to help it monitor compliance with anti-money laundering laws that became a major headache for CBA in It has opened an office in Canberra and is keen to provide its software that monitors blockchain transactions to the public sector. Australian investors are also being caught up in the scams.

Crypto revolution is here to stay. What about India's regulatory stance

The crypto markets had a big year in and experts see the likelihood for greater acceptance by mainstream investors and companies in the new year. Cryptocurrencies have caught attention as an asset class in the last few years and have gone mainstream on the back of their sharp rally despite famed for their volatility and uncertainties around regulations in many countries including India. The digital token went further into the mainstream in as institutions and retail investors got involved with the crypto market. Right from institutions getting involved with cryptos and raising millions of dollars to invest in the space to the booming NFT space. Ethereum outperformed Bitcoin this last year, along with the traditional markets," said Nischal Shetty, Founder, WazirX.

{{ $t("HomeTitle") }}

Transaction screening and risk monitoring using machine learning and graph analytics. Get deeper insights on market activities and user behaviors. Business intelligence platform for graph data. Pre-transaction monitoring solution for compliance teams. API for risk scores based on crypto news sources. An investigative report explaining what cryptocurrency exit scams and DeFi rug pulls are, how they are carried out, and the tracing and investigations of such crypto frauds.

Digital Assets, Blockchain Technology and Cryptocurrencies

Next generation crypto threat detection, risk management and compliance for businesses, banks and government agencies. Automate compliance and AML processes to easily acquire a license, screen transactions, accept crypto payments and comply with local and global regulations. Understand, evaluate and mitigate crypto and fiat AML exposure and counterparty risk. Confidently transact with corporate and retail crypto customers. Forensically investigate crypto crime, track stolen cryptocurrency and identify criminals. Generate detailed reports to use as evidence and support expert witness testimony. Easily identify suspicious transactions on and beyond the blacklists and respond immediately. Trace stolen crypto, uncover hidden patterns in data, identify exit nodes and expose criminals with our investigation solution.

Digital Asset Compliance & Risk Management

Developments continue at a frenetic pace in the crypto industry. Areas with relatively small market capitalizations a year ago have ballooned many multiples during the past year. This advisory overviews three key areas — crypto lending, decentralized finance DeFi and stablecoins — and summarizes what key regulators have been saying about and doing in them.

Strategies

RELATED VIDEO: DEFI INFINITE MONEY TRICK. Crypto INSANE GAINS +300% ALL IN.

TRM enables risk management and compliance for a global community of financial institutions, cryptocurrency businesses and government agencies. One cohesive platform to screen, monitor and investigate cryptocurrency wallets, transactions and entities. Assess the risk profile of Virtual Asset Service Providers and other crypto businesses. Move seamlessly between Bitcoin, Ethereum and more than a dozen other blockchains, building cohesive visualizations as you trace the flow of funds. Choose from a comprehensive set of risk indicators, including FATF's money laundering predicate offenses, to set your own risk scoring criteria. Access the largest and fastest-growing database of illicit services, built from proprietary threat intelligence combined with advanced data science.

Florida Office of Financial Regulation Issues DeFi Advisory

It is a group of DeFi experts with a history of successful business initiatives to serve as a framework for this new organization. Accel Defi combines the finest of crypto, defi, and blockchain technologies under one platform. A platform to construct your projects, pay for services with cryptocurrency, monitor the charts of the recent projects, and uncover the deal flow for the latest projects. UnREKT is a trading application that will enable the creation of conventional limit orders for decentralized tokens. UnREKT will become the most utilised and sought after trading application available by tackling the apparent flaws in existing DEX's, offering traders with the security and use of a CEX, but the flexibility of trading microcrypto on numerous DEX's. Traders will no longer have to worry about manually halting losses or staying up late to monitor a chart since the UnREKT app will do it for them. ArbiBridge is a multi-chain bridge that connects layer 1 and layer 2 networks, as well as tokens and coins.

How do you get involved in DeFi?

In line with the decentralization ethos of cryptocurrency, DeFi aims its innovative scopes at traditional financial sector silos, seeking to disintermediate the complexities and powers of centralized financial entities. However, DeFi has its fair share of challenges in its attempts to fulfill its ambitious mission. The following article explores the conceptual drivers of the potential and risks of DeFi, and what anyone seeking to gain literacy in this rapidly developing ecosystem should keep in mind. DeFi is an amalgam of various platforms and protocols aiming to replicate existing financial services, using some sort of cryptocurrency or blockchain to do so.