Cryptocurrency scams have cost users well over $20billion in the last few years, with rug-pulling scams seriously impacting the credibility of the digital asset ecosystem. However, scams are unfortunately an inevitable part of any financial ecosystem – the key is limiting them and helping victims recover. This is what Xerberus, a cryptocurrency risk rating protocol is doing as it launches Siren, its crypto scam recovery tool.
Supported by a network of lawyers who can litigate any queries raised, Siren allows all crypto users to map and report any scams they face while trading coins on a network. It then generates a free full on-chain report highlighting exactly where the coin or token went after the scam.
This report can then be shared with a growing network of specialist London law firms with a deep understanding of blockchain technology to action the legal proceedings for recovery.
Xerberus CEO and co-founder Simon Peters
On the launch of Siren, Xerberus CEO and co-founder Simon Peters said: “The whole of the team at Xerberus is proud of Siren and what it means for crypto moving forward. As we roll out Siren to new networks it will become a vital tool in protecting crypto users from scams across all major networks.
“Our vision has always been to make crypto more trustworthy through governance and transparency. By doing this and making the cost of bad actions incredibly high, we want to stamp out bad crypto and put an end to malicious industry practitioners. This is why this tool is free. We look forward to working with our users as we continue to bring industry crooks to justice and make crypto trustworthy.”
Simplifying the reporting process
Siren algorithmically produces a map of wallet transactions using Xerberus’ Wallet Graph technology. It maps the movement of assets between all the involved wallets on the chain and highlights the ‘bystander’ wallets, as well as those that are unaffected, to give a holistic overview of the severity of the scam. Correlations identified across scams are used to better understand the behaviours of scammers, to make the industry safer, and to identify potential scams before anything is stolen.
If a case goes to court, all recovered funds from the crypto scam are distributed across the affiliated parties, with the cost of recovery taken from the recovered funds, a five per cent surplus is distributed to affiliated wallets on the coin network and the rest of the funds are returned to the scammed user.
Siren delivers equity for all parties and seeks to stamp out scammers by making it easier for crypto users to report and raise awareness of their stolen funds. Xerberus is democratising justice and putting power back into victims’ hands by making the litigation process inclusive to all investors, not just high-net-worth individuals.
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