It has been announced that Scam Alerts, a web3 fraud notification platform currently managed by crypto transaction monitoring firm Whale Alert, will be acquired by blockchain forensics firm Crystal Intelligence.
The terms of the deal have not been disclosed. The acquisition is anticipated to be finalized by the end of May. Upon completion, Scam Alerts will be established as a separate, non-commercial entity under Crystal Intelligence, as stated in a release shared with The Block.
It was stated by Navin Gupta, CEO of Crystal Intelligence, in an email to The Block, “Too often, scam victims are left with no place to turn. Scam Alert aims to provide them with a platform to speak up and be heard. Every report that is submitted helps create a clearer picture of how these scams function, where they are spreading, and who they are targeting. Such insight is crucial for prevention and for investigators and enforcement agencies trying to navigate an increasingly complex threat landscape.”
It is aimed by Crystal Intelligence to simplify the process through which crypto fraud victims report scams, while also aggregating individual fraud reports, as stated in the release. More generally, the company seeks to enhance cryptocurrency adoption by reducing the occurrence of scams within the industry.
Following the acquisition, Whale Alert will be engaged as an advisory partner. A comprehensive data collection system is intended to be launched by Crystal Intelligence, supporting multiple languages and offering improved victim support. Furthermore, plans are in place for strengthening collaboration with law enforcement agencies worldwide, with Scam Alert expected to collaborate closely with local blockchain communities across the globe.
“Localization is viewed by us as encompassing more than just language; it involves cultural context, regional fraud trends, and reliable community partners,” stated Marina Khaustova, COO of Crystal, in an email to The Block. “Scam Alert is being launched as a direct response to the pressing need to tackle the increasing problem of fraud.”
Navin Gupta was appointed as the CEO of Crystal in February 2024, following his tenure as the managing director at the crypto firm Ripple.
A recent report from the FBI’s cybercrime division indicates an increase in crypto-related financial crimes. Approximately 150,000 complaints involving cryptocurrency were filed with the FBI’s Internet Crime Complaint Center, with losses surpassing $9.3 billion. This marks a 66% rise compared to 2023, with individuals aged 60 or older accounting for about $2.8 billion of the losses from crypto-related online crimes, as previously reported by The Block.
