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Saturday, February 4, 2023

Solidus Labs Informs About Fraud

Solidus Labs, a blockchain tech company that helps developers build scam-proof smart contracts, recently found that at least 15 new scam smart contracts are being created every hour.

This is a problem: Currently, these scams are affecting niche communities like crypto traders and investors. Even still, the issue has not gotten the attention it deserves because it’s been largely limited to those niches. But as adoption grows throughout industries like finance and healthcare – which rely heavily on blockchain technology – this could become a serious problem for everyone.

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The Solidus Labs team is able to spot scams through its automated system, which compares smart contracts against a database of known good and bad contracts. In some cases, this allows them to spot bad actors and their scams before they are live and collecting funds.

“It’s really important for the community to understand what’s going on,” said Vasilevskiy. “If there’s a new scam contract out there and we’re detecting it early enough, then maybe people won’t lose money.”

Solidus Labs Speaks About Scam

At the end of February, the Ponzi scheme Uniswap pool Smart Contract took in $125 mln in ETH. The program was able to identify the suspicious activity of the Uniswap pool prior to it becoming active and initiating a transaction with its users.

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The Solidus Labs team noted that “the presence of these [web3] properties might be indicative of an exploitable vulnerability.”

Solidus Labs CEO Kyle Samani told CoinDesk: “The more good ideas you have about how to apply this technology, the more likely it is your idea is going to be valuable.”

Web3 is seeing a problem of scam smart contracts at an alarming rate. A new research report by Solidus Labs has found that the problem is not limited to one cryptocurrency or smart contract programming language, but rather spans several blockchains, exchanges and wallets.

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