Chainabuse launches to combat Crypto Scam

A group of cryptocurrency companies has teamed up to launch a new multi-chain scam reporting tool, Chinabuse.

The launch was announced by RM Labs, Solana Foundation, Circle, Hedera, the Aave Companies, Binance.us, and Civic recently.

According to the statement, the platform, which is run by blockchain intelligence startup TRM Labs, “empowers anyone in the crypto economy to notify others about hacks, scams or other fraudulent activities as they experience it.”

“The free tool allows crypto users, financial crime victims, and crypto businesses to actively participate in ensuring the crypto ecosystem become a safer place to trade.”

Users can now submit a report under the following categories: Bitcoin, Solana, Ethereum, Polygon, Binance Smart Chain, Hedera, and Tron. Reports can be ranked up or down. Other users of the platform can also submit comments to give further information.

Reports on the same issues or entities are grouped together and stored in a searchable database that anybody may use to double-check addresses or projects before interacting with them.

There are 624 reports on the platform as of this writing, including more than 100 scams involving Ukraine’s crypto fundraising activities.

Chainabuse clarified that it does not file reports with legal authorities on behalf of users, stating that the primary goal of making a report is to warn others to the fraud. The platform’s FAQ page, on the other hand, explains:

“Reporting a scam on Chainabuse may assist identify other victims of similar scam, and victims can choose to receive contact from law enforcement.”

“All cryptocurrency exploit victims should consider submitting a report with the FBI’s IC3, Europol, or the applicable law enforcement agency in their region,” the Chainabuse team advised.

The implementation of the Scam Reporting Tool is certainly a welcome development giving the unending the reports of scams occurring in the cryptocurrency sector. This tool would be instrumental to the safety of operations taking place in the industry.

It may not be enough to halt the occurrence of hacks and scams we predict it would do well to curb any of such occurrence and prevent them from happening in the future.

Among its many brilliant qualities, one which is worthy of note is the fact that traders will have a central place of discourse where they can get timely updates about recently attempted hacks or scams and work towards not falling victim.

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