Latest from Crypto Insight
Crypto Insight
7 hours ago
- Business
- Crypto Insight
Crystal Intelligence shares top insights from the frontlines of the battle against crypto scams
Ensuring top-notch cybersecurity is an essential necessity for businesses to set up shop in the modern business world, and the crypto industry is no exception. Similar to their Web2 counterparts, the crypto landscape fights its own battle against the ever-increasing scams and other security risks. Straightforward scams have transformed into complex, multi-layered operations that pose significant challenges to organizations. As illicit activities become more difficult to crack, the business world dealing with cryptocurrencies is increasingly seeking advanced intelligence and analytics. Crystal Intelligence, a blockchain analytics firm, addresses this need by uncovering hidden patterns in blockchain transactions. The company provides tools that help businesses detect and prevent illicit activities, identify high-risk entities and comply with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. By enhancing transparency and security, Crystal Intelligence aims to keep institutions ahead of evolving crypto threats. Leveraging a team of analysts fluent in many regional languages across the Middle East, North Africa and Asia-Pacific, Crystal Intelligence offers insights that are both globally comprehensive and locally precise. This regional expertise helps clients understand on-the-ground risks and regulatory frameworks, enabling them to operate in complex jurisdictions and effectively mitigate region-specific threats. In this interview, Crysta Intelligencel's lead investigator Andrii Sovershyenni and senior investigator Federico Paesano share key insights into the tricky landscape that crypto businesses must navigate and how to be better prepared against crypto scams and frauds. Cointelegraph: Can you tell us about Crystal Intelligence and its mission in the blockchain and crypto space? Federico Paesano: Crystal Intelligence helps organizations understand and manage cryptocurrency through advanced blockchain analytics and compliance solutions. Our tools allow for real-time tracking, risk assessment, and detailed analysis of crypto transactions. This makes us an essential partner for compliance professionals, regulators, and investigators in the crypto field. We also provide training programs. These programs teach clients best practices in the crypto world and equip law enforcement and private sector teams with the skills they need to trace crypto assets. CT: Crypto scams have evolved significantly over the years. What trends or types of scams have you seen rise the most recently? FP: The way criminals use cryptocurrency has changed a lot over the years. They have become more skilled and now use new technologies to avoid being caught. Let's look at the latest changes in this area and see how they have developed. In the past, scammers used simple tactics to hide their activities. They sent Bitcoin (BTC) through multiple addresses to cash out anonymously via exchanges like BTC-e. However, as regulations became stricter and investigators improved their skills, these basic methods became less effective. The rise of KYC policies and the growing cooperation between centralized exchanges and law enforcement made it much harder for bad actors to cash out without leaving a trace. In response, crypto criminals are changing their tactics. They are using more complex methods that take advantage of new products and services in the blockchain space. Swaps, token bridges and decentralized finance (DeFi) protocols have become the tools of choice for criminals seeking to cover their tracks. Scammers and thieves use these technologies to exchange tokens across different blockchains without going through centralized platforms that require identity checks or interaction with authorities. They take advantage of decentralized exchanges (DEXs) and smart contracts to move funds across multiple blockchains quickly, without the oversight that regular exchanges offer. This makes it harder to track illegal activities. Every day we work with law enforcement agencies around the world. They focus on staying updated on new developments, adjusting to changes, and using the latest tools to track and reveal hidden activities. CT: Can you walk us through a scenario where your technology helped identify or prevent a scam? FP: Acting quickly is crucial in every financial investigation. This is especially so when dealing with cryptocurrencies. The difference between stopping a scam and losing money may be mere minutes. This is where Crysta Intelligence's real-time blockchain analytics can help. Our technology tracks and analyzes crypto transactions as they occur, allowing you to spot illegal activity before it's too late. Big news! Crystal is highly commended at the 2024 Regulation Asia Awards for Best #Blockchain Analytics & Investigations Solution! 🎉 Discover how we're advancing blockchain #compliance & #frauddetection: — Crystal Intelligence (@CrystalPlatform) November 5, 2024 We can quickly label suspicious addresses and entities. Our intelligence team identifies addresses linked to crimes like theft, scams, and hacks, and categorizes them within minutes. This fast response is very important. For example, if stolen funds are sent to a cryptocurrency exchange to be cashed out or exchanged for other tokens, our advanced monitoring tools alert the exchange's compliance team as soon as the funds arrive. They can then take action against the illegal source of the funds. In some cases, this alert can help slow down the flow of stolen funds and may even stop criminals from accessing or laundering the money further. We have many cases where we have been asked to help with investigations. When criminals tried to move funds through multiple digital wallets, our expert investigators noticed unusual patterns. They traced the funds and sent out immediate warnings. Often the exchanges involved will work with us to freeze the funds, and block criminals from cashing out, allowing law enforcement to follow the trail of the stolen assets. CT: How does Crystal Intelligence help law enforcement in crypto-related investigations? Are there any notable cases where your team played a key role? FP: When law enforcement investigates crime proceeds in blockchains, several key factors can determine the success of their work. First, it is essential that the tools are easy to use. A powerful tool is not helpful if it confuses investigators with too much complexity or information. Crystal Intelligence has spent a lot of time improving its user interface to ensure even advanced features are easy to navigate. The graphs and visualizations help investigators see complex crypto transaction patterns clearly without being hard to read. This clarity is crucial in fast-paced situations where every moment matters. Second, attribution data is vital to connecting crypto addresses to individuals or organizations. Crystal Intelligence helps law enforcement establish these links by showing relationships between addresses, transactions, and known entities. This then lets investigators follow the money and contact relevant institutions or people. Compliance teams also benefit from this data, as it helps them assess risks in customer transactions and spot potential criminal activity. Finally, the reliability of the data is critical. Crystal's Intelligence Team works very hard to verify data and gather evidence for accurate attribution and risk scores. This is important as law enforcement agencies must be able to trust the data to act effectively, whether it's freezing assets or pursuing further investigations. CT: Blockchain technology is often praised for its transparency, but scams still occur. What are the challenges in identifying and preventing fraudulent transactions on the blockchain? Andrii Sovershennyi: The largest issue we face is speed. Collecting information about fraud is quite straightforward, but doing it quickly can be challenging. Blockchain payments are faster than traditional payments. With quick confirmation times, an attacker can receive payment and convert funds very quickly, leaving little time for anyone to act proactively. At Crystal Intelligence, we are constantly working to speed up how we collect and use labels in our system to help our clients. This challenge gets harder with fraud, as victims often only realize they have been defrauded much later, and they may never get their money back. That's why it is important to raise awareness about common types of fraud and support trustworthy businesses. CT: Looking ahead, what do you think the future holds for blockchain security? Are there any emerging threats on the horizon that we should be aware of? AS: Blockchain security can be very challenging. Many people, including myself, believe that keeping your own crypto instead of relying on exchanges is safer. However, it can be risky if you lose your private key or if it gets stolen. It's difficult to comment on emerging threats. But the general rule is that criminals innovate constantly. Attackers are becoming more skilled and have pulled off impressive heists against well-protected targets. Many of these attacks use social engineering, like impersonating customer service, and modern AI tools can help them create convincing fake voices, images, and videos. I think the focus on security will shift from technology to laws and regulations. Services will need to prove that they take security seriously, and there may be specific rules about how they handle custody. CT: Finally, what advice would you give to crypto investors or businesses to better protect themselves from falling victim to scams? AS: Many factors are involved when businesses want to work with cryptocurrency. To start, they should follow the recommendations in open standards like the Cryptocurrency Security Standard (CCSS). This standard offers good policies and guidance. There are also many firms that can help businesses create and apply the necessary security measures. For consumers, it's best to choose a licensed and regulated cryptocurrency exchange. Instead of just looking for the 'best cryptocurrency exchange near me', check the list of authorized firms from national financial regulators. While this doesn't guarantee safety, being regulated means these firms must follow certain rules. Additionally, you can visit the International Organisation of Security Commissions (IOSCO) to find information on investor protection. They have a list of services that warn about potential issues. Their site also has many valuable free resources for learning about investments, which can help you assess the opportunities you come across. Crystal Intelligence's website provides a wide range of resources for victims of cryptocurrency scams and helps businesses improve their security through education and awareness. Source:
Crypto Insight
8 hours ago
- Business
- Crypto Insight
Legal strategy matters more than ever for your crypto startup in the UAE
Opinion by: Irina Heaver, crypto lawyer. Founders who treat regulatory structuring as a central part of their go-to-market strategy are the ones who thrive in the UAE. Unfortunately, many founders view licensing as an afterthought. The UAE is not a place where you can cut corners. It is, however, a place where thoughtful, well-prepared founders are rewarded with speed, clarity and access to a highly supportive ecosystem. Contrary to some founders' beliefs, regulators are not the problem — confusion, poor planning and lack of readiness are. The crypto licensing landscape in the United Arab Emirates can be hard to grasp, so much so that even experienced venture capitalists, serial entrepreneurs and global law firms often misunderstand the regime. Let's bring some clarity to the situation. One country, two legal systems The UAE is a federal country comprising seven emirates, operating under two distinct legal systems. The mainland legal system, known as the 'onshore' regime, covers the entire UAE territory and includes over 45 economic free zones. These jurisdictions fall under the UAE's civil law and are governed by the UAE's court system. The financial free zones, Abu Dhabi Global Market (ADGM) and Dubai International Financial Centre (DIFC), operate independently under English common law. They also maintain their own regulatory bodies and court systems, separate from the mainland's judicial system. Understanding this bifurcation is crucial because the regulatory authority governing your crypto activities depends mainly on the legal framework under which you choose to operate. One country, five crypto regulators Five separate authorities regulate crypto and related activities, each with its own jurisdiction, mandate and licensing framework. On the mainland side, the three relevant regulators are: The Central Bank of the UAE (CBUAE): regulates activities involving AED-denominated stablecoins, crypto payments and remittances, and approves foreign stablecoins. The Securities and Commodities Authority (SCA): regulates crypto exchanges, broker-dealers and token offerings that resemble securities or commodity contracts. The Dubai Virtual Assets Regulatory Authority (VARA): regulates most virtual asset service providers (VASPs) operating in Dubai, excluding those in the DIFC. In the financial free zones, there are two separate regulators: The Financial Services Regulatory Authority (FSRA): the financial watchdog for ADGM, which developed one of the most advanced regulatory frameworks for digital assets back in 2018. The Dubai Financial Services Authority (DFSA): the regulator for DIFC, with a cautious but evolving approach to crypto assets. This unique framework can be both a blessing and a challenge. Choosing the wrong regulator or failing to understand the scope of each authority can result in wasted time, missed opportunities or, in some cases, complete licensing failure. Choose the right regulator The right jurisdiction depends entirely on your specific business model. Here are a few common scenarios: Launch a crypto exchange Planning to become the next Binance? Be prepared to navigate a rigorous licensing path. VARA, SCA or ADGM are potential homes for you. Each has its own requirements, and none are for the faint-hearted. Issue a stablecoin If you're thinking of rivaling Tether in AED, then welcome to the grown-up table. You'll be dealing with the Central Bank of the UAE. Build a tokenized RWA platform Want to turn luxury real estate, fine art or a warehouse of whiskey into blockchain-based assets? VARA's newly introduced regime for asset-backed tokens is a must-read. And no, slapping 'utility token' on a white paper won't cut it here. Start a crypto fund Got capital to deploy and a vision to back the next crypto unicorn? It's time to become best friends with ADGM's FSRA. It's one of the most advanced digital asset frameworks out there, but make no mistake, they expect real compliance chops. Launch a payment app Are you looking to make big money moves? The Central Bank will be watching you closely. Don't expect a light-touch approach when handling customer funds. Trying to do it all Don't. Founders often want to build the entire offering in one go, which can be a recipe for regulatory burnout. It is much better to start narrow — get one license, create traction, then scale. More best practices Founders who prioritize regulatory structuring as a core element of their go-to-market strategy are the ones who succeed in the UAE. Success demands a thorough regulatory assessment from the outset, alignment of a business model with the right jurisdiction and authority and collaboration with legal experts who truly understand the local landscape. In the UAE, cutting corners is not tolerated. Founders who plan carefully and engage proactively with regulators are rewarded with speed, clarity and access to a highly supportive ecosystem. Opinion by: Irina Heaver, crypto lawyer. Source:
Crypto Insight
a day ago
- Business
- Crypto Insight
Hong Kong reveals new stablecoin rules and tokenized bond plans
Hong Kong's latest digital asset blueprint places stablecoin regulation and asset tokenization at the heart of its strategy to become a global crypto and fintech hub. The policy statement, issued on Thursday, introduces a framework known as 'LEAP,' targeting legal clarity, ecosystem expansion, real-world applications and talent development. It builds on the foundation laid by the government's first policy statement in October 2022. As part of the new framework, the government will implement a licensing regime for stablecoin issuers starting Aug. 1, which 'will facilitate the development of real-world use cases.' The Securities and Futures Commission (SFC) will oversee licensing for digital asset (DA) dealing and custody providers, while the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority will lead a legal review to support the tokenization of real-world assets (RWAs). Hong Kong to regulate tokenized bonds The government also plans to 'regularise the issuance of tokenized Government bonds' and promote tokenized ETFs by clarifying their stamp duty treatment. 'With that, the Government welcomes the introduction of secondary market trading of these tokenized ETFs on licensed DA trading platforms or through other channels,' the policy statement said. Beyond bonds and funds, the government said it aims to incentivize tokenization across broader sectors, including metals and renewable energy assets, demonstrating 'the versatility of this technology across sectors such as precious metals (e.g., gold)… and solar panels.' The policy also includes new measures to boost innovation, such as a Cyberport funding program aimed at supporting standout blockchain and digital asset projects. In a statement, Financial Secretary Paul Chan said the new framework 'showcases the practical use of tokenization' and aims to 'build a more flourishing DA ecosystem which will integrate the real economy with social life.' The government said it will soon launch public consultations on new licensing regimes. Hong Kong eyes crypto derivatives Earlier this month, Hong Kong's financial authorities said they were preparing to introduce digital asset derivatives trading for professional investors. The initiative follows recent approvals for spot crypto ETFs, futures products and staking services, including a green light for HashKey to offer staking in April, as the city positions itself as a leading digital finance hub. In May, the city's Legislative Council passed the Stablecoin Bill, paving the way for a regulated framework that could position the region as a global leader in digital assets and Web3 development. Source:
Crypto Insight
a day ago
- Business
- Crypto Insight
Trump-backed World Liberty to release stablecoin audit, make WLFI transferable
World Liberty Financial, the crypto venture linked to US President Donald Trump, is preparing to release an audit of its stablecoin and hinted that its governance token, WLFI, may soon be transferable. Speaking at the Permissionless conference in Brooklyn on Wednesday, co-founder Zak Folkman told Blockworks' Jason Yanowitz that the company's stablecoin had recently received its first attestation report from an accounting firm. Folkman added that the attestation report will be published on the project's website 'within the next few days.' He also suggested a significant shift may be coming for WLFI, the project's governance token. 'I don't want to give away too much,' he said, 'but if you pay attention over the next couple of weeks, I think everyone… is going to be very, very happy.' WLFI currently grants voting rights, but they are nontransferable. Folkman added that World Liberty plans to launch a new app aimed at making crypto easier to use for retail participants, a move that could broaden the platform's appeal ahead of the election cycle. WLFI to become transferable Confirming the news in a recent X post, World Liberty Financial said that its WLFI token may soon become transferable, following growing demand from its community. 'You asked to make $WLFI transferable — we heard you,' the project said, adding that the team is actively working behind the scenes to enable the change. The message concluded with a promise of 'big news coming soon.' Still, the announcement received mixed reactions. While some expressed excitement about being able to acquire WLFI, others were skeptical. 'Translation: Team is trying to dump their supply,' X user Clemente wrote. 'Not just the team but retail investors and foreigners. American middle class will jump in finally to hold the bag as usual,' another user claimed. Trump earns big from crypto Donald Trump has reported earning $57.4 million from World Liberty Financial. According to his 2025 financial disclosure filed with the Office of Government Ethics, Trump holds over 15 billion governance tokens in the project, which come with voting rights. The income comes from token sales. World Liberty Financial has raised $550 million through two public token sales since its launch in September 2024. The platform focuses on DeFi services and dollar-pegged stablecoins, branding itself as a disruptor of traditional finance. The project has attracted notable crypto investors, including Tron founder Justin Sun, who purchased $30 million worth of WLFI tokens, and Web3Port, which invested $10 million. Oddiyana Ventures also joined as a backer in early 2025. Source:
Crypto Insight
a day ago
- Business
- Crypto Insight
UAE company invests $100M in Trump family-backed crypto business
World Liberty Financial, the cryptocurrency company backed by US President Donald Trump and his family, has reported that a United Arab Emirates-based company purchased $100 million worth of the platform's governance token, WLFI. In a Thursday notice, World Liberty and Aqua1 Foundation — self-described as a 'Web3-native fund' — said the $100-million deal was 'intended to help accelerate the creation of a blockchain-powered financial ecosystem centered on blockchain development, Real World Asset (RWA) tokenization, and stablecoin integration, aiming to set new benchmarks for global capital efficiency.' The purchase makes Aqua1 a bigger WLFI tokenholder than Tron founder Justin Sun, who invested $30 million in the project in November. 'WLFI and Aqua 1 will jointly identify and nurture high-potential blockchain projects together,' said Aqua1 founding partner Dave Lee. 'WLFI's USD1 ecosystem and RWA pipeline embody the trillion-dollar structural pivot opportunity we seek to catalyze — where architects merge traditional capital markets with decentralized primitives to redefine global financial infrastructure.' World Liberty is already under scrutiny from US lawmakers due to the Trump family's connections with the firm. Trump's three sons are named as co-founders of the company, and in June the president disclosed $57.4 million in income tied to WLFI, along with personally holding 15.75 billion governance tokens. WLFI under scrutiny as US Congress looks to stablecoin bill The Trump family's crypto business had already been facing criticism after Eric Trump announced in May that an Abu Dhabi-based investment company, MGX, would use the platform's USD1 stablecoin to settle a $2 billion investment in Binance. The move came as Congress weighs bills to regulate payment stablecoins, prompting concerns from Democratic lawmakers that the president was backing legislation that could benefit his family's business ties. At a Senate Appropriations Committee hearing on Wednesday, US Attorney General Pam Bondi sidestepped a question from Oregon Senator Jeff Merkley over the president's connections to World Liberty Financial. 'I think it's important for the leader of the Justice Department of the United States to be very concerned about foreign influence,' said Merkley. 'And I encourage you [Bondi] to take on the topic and not consider it an offense that those of us who are concerned here, Democrats and Republicans, want Americans to make American decisions. Not foreign influence being bought through crypto coins.' Several US lawmakers have suggested different legislative paths for Congress to address potential conflicts of interest with the crypto industry. The proposals included amendments to the Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act, and separate legislation to prevent the president and future leaders from investing in digital assets while in office. Source:
