Two crypto giants collaborate to build the CryptoSafe Alliance
Binance, the world’s largest cryptocurrency exchange, has partnered with Oasis Labs, a privacy-focused blockchain cloud computing company, to tackle fraud across the crypto industry.
Oasis Labs was announced as the inaugural member and a primary infrastructure provider for the CryptoSafe Alliance, an initiative led by Binance.
Oasis Labs’ secure smart contract technology will underpin the decentralized CryptoSafe Platform, which is designed to enable threat intelligence sharing between cryptocurrency exchanges. The platform will operate on the Oasis Network blockchain.
Both companies stressed that CryptoSafe must support collaborative fraud detection while preserving participant data confidentiality and privacy.
The platform will first focus on enabling private intelligence sharing. After establishing those capabilities, it will expand to provide “real-time fraud analysis to fight cryptocurrency hacks, theft, and laundering.”
Changpeng Zhao, CEO of Binance, called on industry participants to join the CryptoSafe Alliance, noting that coordinated efforts are essential to strengthen security across the community.
“A collective effort and closer collaboration among members will better ensure the security of the global cryptocurrency community and protect the broader ecosystem’s integrity,” he said.
At launch, CryptoSafe will allow exchanges to share intelligence about transactions on the Bitcoin (BTC), Ethereum (ETH), Tron (TRX), and EOS blockchains. Developers are working to add support for more networks by the end of the year.
Cryptocurrency-related fraud has become a growing problem, especially amid the COVID-19 pandemic. Scammers have increasingly used social media to promote fraudulent investment schemes, fake health websites, or supposed cures and treatments tied to the pandemic.
Social platforms have also faced pressure to strengthen ad policies after high-profile incidents in which crypto-related scam ads spread widely on services like YouTube and Google despite moderation efforts.
For example, Ripple CEO Brad Garlinghouse filed a lawsuit against YouTube in April after ads impersonating him ran on the platform.
Users are advised to exercise caution when responding to online advertisements or investment offers, particularly those related to cryptocurrencies. Verifying sources, using reputable exchanges, and avoiding unsolicited investment pitches can help reduce the risk of becoming a victim of fraud.