Blockchain security firm Chainalysis has announced the results of Operation Spincaster, an initiative aimed at tackling “approval phishing” scams. These scams have led to the loss of $2.7 billion in crypto since May 2021.
Operation Spincaster, launched in April, is a global expansion of an earlier collaboration with Calgary police in March 2024. The initiative involved coordinated efforts across six countries between April and June, engaging 12 public sector agencies and 17 crypto exchanges.
Chainalysis identified over 7,000 criminal-linked leads during these “operational sprints.” By tracing the flow of funds, they were able to close criminal-linked accounts, seize funds, and gather intelligence to prevent future scams.
In one instance, Chainalysis contacted a potential victim directly, warning them of an imminent threat. This intervention allowed the individual to revoke approvals, preventing the loss of a significant amount of crypto.
Operation Spincaster employed a “three–pronged” strategy: raising public awareness about approval phishing scams, equipping crypto exchanges with surveillance tools to monitor suspicious wallets, and enhancing law enforcement capabilities.
Phil Larratt, Chainalysis’ director of investigations, explained that exchanges and law enforcement teams have been using the firm’s crypto investigation tools to better protect users’ assets. He stated, “Exchanges, in particular, use Chainalysis to conduct thorough background checks on transactions, monitor for signs of illicit activity, and prevent fraud. This protects their customers’ assets and minimizes exposure to malicious actors.”
Summary Review: Operation Spincaster represents a significant step forward in the fight against crypto scams, leveraging education, tools, and training to safeguard the crypto community.
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