Crystal Blockchain and the Global Anti-Scam Alliance announced a partnership to fight fraud in Web3. The Crypto Trust Seal (CTS) will create a framework for transparency in an otherwise opaque industry. By providing a degree of assurance, with high standards that must be externally verified, certified companies can demonstrate compliance with a set of responsible practices intended to become industry requirements.
“As with any technology, blockchain can bring us many benefits. However, it is increasingly being misused by criminals preying on the vulnerable. Launching a global trust seal for cryptocurrency providers will raise the bar in a sector plagued by scammers,” says Jorij Abraham, Managing Director of the Global Anti-Scam Alliance.
“Crystal conducts all its worldwide blockchain investigations with integrity while employing cutting-edge technology. We couldn’t ask for a better partner on this long overdue mission for the space.”
The CTS seeks to provide valuable information for those navigating the blockchain space. This includes providing criteria for external validation of coin issuers, lenders, decentralized finance (DeFi) protocols, exchanges, marketplaces, and even virtual worlds. Retail customers and institutional mainstays will benefit by bringing trust to the crypto industry.
“It is time to distinguish responsible actors from irresponsible and fraudulent ones,” says Nick Smart, Crystal’s Director of Intelligence.
“Crystal’s work with the Global Anti-Scam Alliance and creating the CTS seal will allow digital currencies to mature into a regulated industry with recognized rules and operating procedures.”
Numerous scams, hacks, fraud, deceit, misrepresentation, and illicit activities have plagued the cryptocurrency industry. The US Federal Trade Commission reports nearly $2 billion lost in investment scams in the USA alone in the first half of 2023; this amount is just the tip of the iceberg, as only an estimated 7% of victims report scams to the police.
These issues have made it challenging for users to identify safe platforms for their cryptocurrency transactions. Notable cases involving Mt. Gox, Celsius, 3AC, Voyager, FTX, and others have created a negative perception among the public, discouraging them from exploring the crypto industry. New scams and fraudulent schemes emerge daily, preying on unsuspecting consumers and resulting in substantial financial losses.
The Crypto Trust Seal will be discussed in-depth at the Global Anti-Scam Summit (GASS), where 250 experts, physically and 1,000 virtual attendees, will share intelligence and define new solutions to protect consumers against scams better.
To discover how blockchain analytics tools can help transform your compliance needs and investigate crime or to learn more about Crystal, book a call with us here.