Alternative Lending
Rising crime in DeFi is putting companies on high alert.
Image source: PlutoDigitalAssets.
Crypto technology company Pluto Digital has partnered with cryptoasset risk management firm Elliptic to protect the company and its customers from criminal activity.
It has been agreed that Elliptic will provide blockchain analysis and screening solutions for Pluto’s Yield Optimization Platform (YOP).
YOP is a DeFi yield farming platform that allows clients to stake or lend cryptoassets for interest and other rewards.
Pluto has used Elliptic’s wallet screening solution – Lens – to screen crypto wallets in real-time using the YOP platform, protecting itself and its customers from financial crime.
Last week, Elliptic rolled out its holistic cross-chain bridge screening solution, which helped uncover $540 million in laundered funds in RenBridge’s cross-chain.
Elliptic found that cybercriminals such as North Korea’s Lazarus group and Russia’s Wizard Spider gang were involved in the money laundering activities.
This news came on the back of the US Treasury Department’s Office of Foreign Assets Control, which sanctioned cryptomixer Tornado money for laundering $7 billion worth of crypto.
Both Lazarus and Wizard Spider were involved in Tornado Cash, a crypto mixer that anonymizes the origin and identity of its funds and investors.
“We need to protect our business, our reputation and our customers, and that means we need to know where crypto is coming from,” said Dave Burrells, chief operating officer at Pluto Digital.
Burrells said illegal actors, including North Korean state-sponsored hackers Lazarus Group, were identified on the first day and blocked from interacting with the platform.
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