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Thursday, December 2, 2021

Twitter Vigilantes is hunting down crypto scammers

Of course, the main problem with amateur surveys is the lack of teeth. The Twitter topics or blog posts where crypto detectives reveal their findings are only suitable for warning potential victims or humiliating perpetrators. The hope is that people will care enough about their reputation to make up for it. This happened at Divergence Ventures, and the earlier NFT market OpenSea, which found itself at the center of another “insider trading” scandal in September. Twitter user It accuses its product owner of hoarding the NFTs of artists who are about to appear on the OpenSea homepage to profit from the surge in hype. The product owner was forced to resign.

But when shame does not prompt change, almost no one can do it. Many of the actions uncovered by crypto detectives took place in a regulatory vacuum. “Insider trading has a very special meaning-the use of non-public information in stock market transactions,” said Nick Price, an expert on crypto asset disputes at the Osborne Clark Law Firm. “These tokens are not stocks. NFT is not regulated, so it is not insider trading.”

Price said that fraud can be reported to the police, such as the theft of cryptocurrency or the manipulation of smart contracts. But he said that the level of censorship from the cryptocurrency community, and the quality of information it can crowdsource, is “unprecedented.”For example, in October, users of the DeFi agreement Indexed Finance Said They exposed the person who carried out a $16 million robbery on the Internet-although negotiations with hackers to recover the funds were ultimately unsuccessful. The team is working to “determine which authorities have jurisdiction over the attack”, According to a recent Twitter post.

The public ledger of the blockchain is a great advantage for investigating hoaxes. Compared with other industries, it “leaves a better audit trail,” Price said. “There is more information available for those willing to conduct technical analysis.”

In other words, relying on anonymous Twitter accounts to monitor fanatical, high-risk online spaces is risky. in May, @WARONRUGS, A Twitter-based regulator, allegedly a fiery scam hunter, allegedly Ran The stolen cryptocurrency was nearly $500,000. Even without considering extreme dishonesty, some people worry that systems based on online calls are too easy to be abused. Mitchell Amador, the founder of Immunefi, a brokerage firm that conducts “vulnerability bounty” transactions between hackers and DeFi developers, is critical of what he calls the “crowdsourcing panorama” , And pointed out the Twitter abuse by Harris, a young Divergence Ventures employee. Run a wallet for orchestrating airdrop operations. Harris, still a college student, became the target of dozens of mocking, mocking, and insulting tweets. Divergence Ventures stated that she should not be held responsible for the company’s actions, but Harris still deleted her Twitter resume and remained silent on social media.

Gabagool acknowledged that Twitter’s regulation has a “sinister side”. “I think for some people, this is reminiscent of a’cancel culture’.” But this is really not my intention,” he said. For him, self-discipline is still preserving DeFi freedom and innovation The best way to space. If this can’t be done, he fears “something else will appear.” And I cannot guarantee that alternatives will be beneficial to the community,” he said.

It may be too late to avoid this situation. In September, the U.S. Securities and Exchange Commission Investigate Uniswap Labs, The developer of the DeFi exchange Uniswap. SEC Chairman Gary Gensler has said that some DeFi agreements may eventually Subject to securities regulation.

“The question is, do we use open systems that people create themselves? Or do we use the long arms of the country?” Amador said. “Either way, we will eventually have some form of regulation-this result is beyond doubt. At present, we are still in that adjustment period.”

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