Transactions made through the Binance Smart Chain network created by the Exchange are now analyzed by Ciphertrace transaction tracking and wallet attribution software.
The Binance Smart Chain network and its DeFi ecosystem, a rival to Ethereum, will now be analyzed by the security company Ciphertrace. In this way, fraudulent activities that happen in the will be investigated by specialists.
Binance is known to be a client of CipherTrace for quite some time now, and this partnership is likely to appease regulators in regards to the DeFi space which the Financial Action Task Force (FATF) has recently warned that is on their radar.
At Consensus 2021, this week, Binance said that it isn’t possible to roll back the Blockchain to its previous state after exploits on the BSC and that the so-called “rug pulls” are nothing that Binance is responsible for.
“It’s decentralized and the community handles it, but we [Binance] are also involved to an extent,” said Alphonso, adding:
“We cannot do any rollbacks because we do not have any sort of authority over the chain. We do have the ability to provide tools to monitor exploitations, hacks, and scams. CipherTrace can help us understand that. But it has nothing to do with having more authority or being in a position of control.”
In a statement on Friday 28th May 2021, Binance said that this measure improves the ecosystem, freeing malicious people from the network. In addition, the network is legitimate for the creation of new businesses with blockchain, since the network has suffered many attacks in recent days.
The last of them, on past Thursday 27th May 2021, was BurguerSwap, being the target of an attack called Flash Loan. In the last few days, another one that suffered the same invasion was Pancake Bunny Finance, causing huge damage to investors.
Ciphertrace starts analyzing Binance network and DeFi ecosystem
DeFi is a new term for many cryptocurrency investors, who come to understand the potential of new, decentralized financial tools. Some platforms, for example, operate in the provision of banking services, but with the use of cryptocurrencies.
The main Defi network today is Ethereum, which is beginning to be closely followed by the Binance Smart Chain, a network created by the largest cryptocurrency broker in the world. Also called BSC, the network has undergone severe security tests in the past few days, with smart contracts being invaded with a frightening frequency.
To help mitigate invasions, BSC will now enlist the help of the company Ciphertrace, which analyzes blockchain data for cybersecurity reports.
We’re thrilled to welcome a leading cryptocurrency intelligence company CipherTrace to the Binance Smart Chain ecosystem. Today, May 27, CipherTrace announced analytics support for Binance Smart Chain, providing the power to identify higher-risk financial transactions on BSC and its 600+ decentralized applications (dApps), with support from Binance. The inclusion of CipherTrace’s analytics also allows Virtual Asset Service Providers (VASPs), including exchanges, banks, OTC desks, hosted wallets, and other financial institutions, to flag transactions occurring on BSC with a high probability of originating in illicit activity, including fraud.Binance
According to Binance, the arrival of the company will help to reduce illicit transactions on the network, in addition to fraud, as has been common.
In addition, the broker believes that Ciphertrace will help provide more security for the arrival of promising new projects on the network, which it believes will compete with Ethereum because of its low transaction fees.
New partnership helps Binance network in eventual market regulation
Commenting on the partnership, Binance’s Head of Compliance, Samuel Lim, said that fighting fraud is essential not only for the arrival of new projects but also for possible market regulation.
In addition, it is important for the chain to see if it is not being used for money laundering, Lim said.
Dave Jevans, CEO of Ciphertrace, said that all tokens created in the Binance network are now analyzed by his solution.
“We are very excited to announce analytics support for one of the fastest-growing blockchains currently being deployed by developers. One of the advantages of our data attribution system is that once we add analytics for a blockchain, we also add support for all applications built on that network. This efficient system gives us the ability to adjust to the constantly-changing cryptocurrency landscape much faster than competitors, setting us apart from other blockchain analytics companies.”Dave Jevans, CEO of CipherTrace