The company for cryptocurrency and blockchain intelligence CipherTrace announced analytics support for Binance Smart Chain (BSC) as attacks and vulnerabilities in protocols running on the network increase.
In an announcement dated May 27th The company stated its goal is to identify the highest risk financial transactions taking place in BSC and its decentralized applicationsCipherTrace is already tracking the activity of more than a thousand digital assets. Dave Jevans, CEO of CipherTrace, explained this Once support for a blockchain has been added, the company can add analytics for any application built on that network.
The inclusion of CipherTrace analyzes also enables Virtual Asset Service Providers (VASP)such as exchanges, banks, OTC desktops, hosted wallets, and other financial institutions; Flag transactions that take place in BSC that have a high likelihood of triggering illegal activities, including fraud.
Binance’s Chief Compliance Officer, Samuel Lim noted that complying with global anti-money laundering regulations is paramount and CipherTrace will help them achieve it.
CipherTrace’s inclusion of Binance Smart Chain data in its attribution system to support applications and exchanges is a measure to combat illegal activity. In the long term, this will result in BSC gaining more credibility and partnerships in the fiat and regulated areas. “
BSC has been the epicenter of DeFi’s illegal activities and exploits for the past several months. The list of logs that have lost money to malicious actors is growing;; The largest of these is PancakeBunny, which lost up to $ 200 million to BNB and its native token in a massive flash credit attack on May 20.
Other DeFi protocols running on BSCs that have recently been hacked or exploited include Cream Finance, bEarn, Bogged Finance, Uranium Finance, Meerkat Finance, SafeMoon, and Spartan Protocol.
Earlier this month, Marie Tatibouet, Marketing Director for Crypto Exchange Gate.io, announced this to Cointelegraph The lack of diligence has exacerbated these exploits due to the centrality of BSC, adding that “hundreds of projects green light every week”“.