End of last month, $4.2B cryptos have been confiscated by Chinese authorities from the PlusToken Ponzi scheme crackdown, including a total of 194,775 BTC, 833,083 ETH, 1.4 million LTC, 27.6 million EOS, 74,167 DASH, 487 million XRP, 6 billion DOGE, 79,581 BCH, and 213,724 USDT [1].
Starting in May 2018, the PlusToken promised its users very attractive daily payouts. It is actually a fake crypto arbitrage trading platform though. During a year until June 2019, the pyramid scheme tempted over 2.6 million members across 3,293 layers, according to the Jiangsu Yancheng Intermediate People's Court. Ringleaders of PlusToken were sentenced to up to 11 years in prison with fines ranging from $18,000 to $900,000.[2]
How does Scorechain crypto risk-AML software handle this kind of funds?
On Scorechain Blockchain Analytics Platform:
- First of all, scammers’ wallets are redflagged as “Scam” with a low score of 1. All the addresses that receive coins from scammers or send funds to these scammers are impacted at the level of risk scoring.
- Secondly, Scorechain Risk Indicator will be triggered when Scorechain users check a transaction or an address which is involved in this kind of funds, if they have set up “Scam” as one of the risk indicators in advance. The notification of “Scam” detected is displayed on the transaction or address page with a pop-up so the users won’t definitely miss it.
- Besides, users can also set up the alerts such as when there are funds coming from any wallets with scoring lower than 1 (Scam, for example) to get real-time notifications.
Want to try out our powerful crypto risk AML solution? Contact us for a free demo: contact@scorechain.com
About Scorechain
Scorechain is a Risk-AML software provider for cryptocurrencies and digital assets. As a European leader in crypto compliance since 2015, the Luxembourgish company serves worldwide customers in 29 different countries with more than 150 licenses established, ranging from cryptocurrency businesses to financial institutions with crypto trading, custody branch, digital assets customers onboarding, audit and law firms and some LEAs.
Scorechain solution supports Bitcoin analytics with Lightning Network, Ethereum analytics with all ERC20 tokens and stablecoins, Litecoin, Bitcoin Cash, Dash, XRP Ledger and Tezos. The software is able to de-anonymize the Blockchain data and connect with sanction lists in order to provide a risk scoring on digital assets transactions, addresses and entities. The risk assessment methodology applied by Scorechain has been verified and can be fully customizable to fit all jurisdictions. 300+ risk-AML scenarios are provided to its customers with a wide range of risk indicators so businesses under the scope of the crypto regulation can report suspicious activity to authorities with enhanced due diligence.
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References:
1.https://www.theblockcrypto.com/post/85873/china-seize-billion-cryptos-from-plustoken-crackdown ↩
2.https://www.coindesk.com/ringleaders-of-plustoken-scam-jailed-for-up-to-11-years ↩
