Crypto firm has launched a community-driven fraud reporting mechanism

'Chainabuse,' a community-driven scam reporting platform, has been launched by crypto firms

A new crypto scam reporting portal has been established by many crypto companies, including Binance and Circle. "Anyone can use this service to alert others about scams, hacks, or other fraudulent activities in the cryptocurrency industry."

A new multi-chain scam reporting tool has been launched by a coalition of cryptocurrency companies. "The introduction of a new community-powered fraud reporting tool, Chainabuse," was announced by TRM Labs, Circle, Solana Foundation, the Aave Companies, Hedera, Binance.us, and Civic last week.

The platform, which is maintained by TRM Labs, a blockchain intelligence business, "enables individuals in the crypto economy to warn others about scams, hacks, or other fraudulent actions as they encounter it," according to the announcement.

Bitcoin, Ethereum, Solana, Polygon, Hedera, Binance Smart Chain, and Tron are the current categories in which users can post reports. Reports might be rated positively or negatively. Other platform users can also leave comments to provide further information.

Reports on the same locations or entities are pooled and placed in an accessible database, which anybody may use to check addresses or projects before interacting with them, according to the statement.

As of this writing, there are 624 reports on the platform, including over 100 frauds involving Ukraine's crypto fundraising efforts. Chainabuse clarified that it does not file reports with legal authorities on behalf of users, stating that the primary goal of making a report is to warn others about the fraud. On the other hand, the platform's FAQ page explains:

Reporting a scam on Chainabuse may assist identify other victims of the same scam, and victims can choose to receive contact from law enforcement.

"All victims of crypto fraud should file a report with the FBI's IC3, Europol, or the local law enforcement agency," the Chainabuse team advised.