In a move to combat the growing risk of crypto-based cybercrime and to provide additional security for client funds, multi-asset trading platform, PrimeXBT, has announced their partnership with Bitfury Group’s crypto analytics and compliance company, Crystal Blockchain.
Crystal specializes in providing real-time data about potentially problematic and illegally-sourced payments, using their advanced proprietary software to track the origins of cryptocurrency transactions.
The project has already worked with other major exchanges and platforms during high profile attacks, including the December 2018 Electrum wallet phishing attack, and the June 2018 Bithumb hack that netted over 2,000 BTC – with a value of more than $31 million at the time of the attack.
In this case and others, Crystal was used to track the whereabouts of the stolen cryptocurrency and to provide live data to other exchanges in order to allow them to identify transactions that have illicit origins.
Based on PrimeXBT’s prodigious growth in 2019 of both its number of users and trading volume, upgrades to the platforms AML and CFT compliance procedures were necessary to meet the growing demand.
The integration of Crystal’s cutting-edge analysis tools marks the addition of yet another advanced feature by the platform, with consistent steps being taken this year towards providing traders with world-class security, compliance and usability.
Cybercrime Becoming More Prevalent Every Year – $4.3B Stolen in 2019 so far
Cointelegraph reported that so far in 2019 over $4.3 billion worth of cryptocurrency has been stolen via exchanges hacks, exit scams and other methods targeting trading platforms and crypto investors.
PrimeXBT’s partnership with Crystal comes at a time in which cybercriminals and hackers are becoming ever more active within the cryptocurrency industry. Exchanges and trading platforms are particularly popular targets, because of the significant rewards and typically expansive attack vectors to protect.
Ransomware is also growing in popularity as a tool used by cybercriminals, and the ability for these funds to be deposited into PrimeXBT without detection is dramatically reduced with the use of Crystal’s analytics technology.
The real-time information that PrimeXBT will receive will allow for immediate action to be taken in the event of deposits from any malicious actors, and will simultaneously enhance safety and security for all traders that use the platform.
No Compromise of User Privacy by Targeting the Source of the Transaction
With the use of Crystal, there needs to be no deviation from the high standards of user privacy that PrimeXBT maintains in order to identify illicit inwards transfers. The origin of each transaction is assessed and given a risk score based upon their connection to known scams, vulnerable darknet marketplaces and other addresses that are deemed as risky.
Throughout the process no personal user data is gathered or stored, which ensures full user privacy, while transactions that originate from dubious locations are immediately flagged by the system.
Crystal’s proprietary algorithm scans all cryptocurrency entering the platform, where funds tied to bad actors, criminal activities and other malicious origins are quickly identified and easily quarantined.
There is no requirement for personal or private user data to be provided to Crystal’s algorithm, and only data relating to the assets themselves are provided, such as the previous wallet address and transaction histories.
The Latest Addition in a Range of Advanced Features to be Added to PrimeXBT
The unparalleled growth that PrimeXBT has seen in 2019 has coincided with the release of a wide range of powerful new features and tools, and the introduction of over 30 traditional assets to compliment the bevy of leading crypto-assets already available.
The platform announced a partnership with crypto social-trading platform, Covesting, to integrate a module that allows traders to generate additional profit on trades by creating peer-to-peer funds, allowing others to invest behind experienced traders with proven track records.
In July, PrimeXBT also became a bridge between global cryptocurrency and traditional markets by incorporating 18 major Forex pairs, commodities like Gold (XAU/USD), Silver (XAG/USD) and Oil (BRENT/USD, CRUDE/USD), and the world’s leading stock indices such as the NASDAQ, SP500 and NIKKEI.
These releases all join a range of pre-existing advanced features that include leveraging of up to 100x on all of the top crypto-assets, aggregated liquidity from 12 providers, powerful and easy-to-use iOS and Android apps, and the introduction of leveraging of up to 500x on traditional assets and instruments.
Crypto cybercrime is on the rise in 2019, and by partnering with Bitfury’s Crystal, PrimeXBT is positioned to provide global cryptocurrency investors with a safer, more secure and more compliant trading environment.
With the integration of Crystal’s cutting-edge analysis algorithm, PrimeXBT’s security and compliance measures will be enhanced, and will allow for the real-time identification of transactions from risky sources, and the functionality for them to be appropriately dealt with.
User privacy does not need to be sacrificed in order to track the origins of each transaction, and in partnership with Crystal, PrimeXBT has implemented a solution that allows for alignment with global regulatory requirements for information sharing relating to crypto cybercrime, while still ensuring that all clients retain their privacy while using the platform.