Crystal Intelligence Acquires Scam Alert to Combat Crypto Fraud

Crystal Intelligence has acquired Scam Alert, aiming to bolster support for victims of cryptocurrency scams and enhance cooperation with law enforcement agencies. The platform allows victims to report scams while Crystal’s analytics technology identifies broader fraud patterns. With rising crypto fraud losses, the initiative seeks to improve safety in the crypto space through collaboration and education.

In a significant move announced at Token2049 Dubai, Crystal Intelligence has acquired Scam Alert, a platform dedicated to reporting and detecting cryptocurrency scams. This acquisition signals Crystal’s dedication to better support scam victims globally and enhance the collaborative efforts with law enforcement to tackle rising crypto fraud, which has escalated alarmingly in recent years.

The problem of crypto fraud is rampant, leaving victims feeling abandoned and unacknowledged. Crystal’s integration of Scam Alert aims to change that by allowing victims to report scams while also employing sophisticated clustering analytics. This technology will enable the identification of patterns across individual reports, thereby connecting seemingly isolated incidents to more extensive criminal operations.

Frank van Weert, founder of Whale Alert—the team behind Scam Alert—expressed optimism about the acquisition. He mentioned that the platform was founded to combat crypto crime, and joining forces with Crystal Intelligence will enhance their impact. Van Weert emphasised that a safe environment is crucial for blockchain technology to flourish.

Navin Gupta, CEO of Crystal Intelligence, highlighted the pressing need for action. He noted that while the company mainly serves business clients, they receive a large number of messages from scam victims in dire need of assistance. Gupta stated that justice for individual victims is rare, allowing scammers to continue their schemes unchecked. With the Scam Alert acquisition, Crystal aims to better triage scam reports and collaborate with both law enforcement and virtual asset service providers (VASPs) to aid in fund recovery.

According to the FBI’s Internet Crime Complaint Center report for 2024, cryptocurrency crimes resulted in losses exceeding $9.3 billion, which marks a staggering 66% increase from 2023. This troubling trend underscores the need for enhanced measures to protect users.

Whale Alert will remain an advisory partner in this initiative, and they plan to leverage their substantial social media following to expand the reach of Scam Alert. Crystal is set to implement a phased strategy that includes a multilingual approach to data collection, developing victim support systems, and establishing connections with global law enforcement bodies. Furthermore, Scam Alert will adapt Crystal’s hyperlocal intelligence strategy, collaborating with various community stakeholders around the world.

Marina Khaustova, COO of Crystal, reinforced the importance of Scam Alert as a vital resource for those affected by crypto scams. Khaustova is optimistic that this initiative will transform fragmented victim experiences into substantial insights, greatly aiding in scam prevention efforts. She expresses eagerness to collaborate with Whale Alert for a robust approach to fraud protection.

The initiative has garnered backing from notable industry figures, including Polygon, Tether, and the Ethereum Foundation, all of whom share a vision to create a safer cryptocurrency environment.

Looking ahead, Crystal aims to make significant strides in enhancing safety for crypto users. Gupta remarked that scams are a major hindrance to cryptocurrency adoption. He views Scam Alert as a tangible commitment to fostering a safer blockchain ecosystem through cooperative data sharing, educational efforts, and proactive detection of scams.

Intriguingly, the Scam Alert initiative will operate as a standalone, non-commercial project within Crystal, seeking collaboration with other industry leaders, regulators, and foundations to combat crypto fraud effectively.