Web3 Security and Crypto’s $10 Billion Problem

Web3 Security and Crypto's $10 Billion Problem

If you are listening to this podcast then you’ve probably already heard a lot about The Ronin Bridge hack, or the attack on the Wormhole Protocol and probably the ransomware attack against Colonial Pipeline, but have  you heard about the scam that hit tens of thousands MetaMask wallet users and resulted in the theft of over $200 Million of funds?

On this podcast,  Ian Andrews (Chief Marketing Officer, Chainalysis) is joined by colleagues from the Chainalysis Investigations team Adam Hart and Julia Hardy.  This episode was recorded just  after they returned from presenting their research at DevCon Bogota, the biggest gathering of Ethereum developers this year.

The discussion gets into the mechanics of one of this leading crypto scams, the investigative process and the enthusiasm from the Ethereum community to help solve this problem. 

Minute-by-minute episode breakdown

• (1:31) – Recap of Devcon Bogota 2022. Highlighting the Ethereum focused blockchain developers and community
• (3:25) – Identifying consumer protection as the big “elephant in the room” for the Ethereum community 
• (6:34) – Balancing the core blockchain ethos of decentralization with stopping bad actors and protecting consumers and institutions trying to operate in the space 
• (9:50) - Analyzing the USDT Approval Mining Scam that was identified by MetaMask 
• (14:05) – Identifying the cash out points used by the scam operators
• (17:55) – How the USDT approval mining scam has similar characteristics of the emerging Pig Butchering scam
• (21:25) - Collaboration of MetaMask and Openseato educate users on how to use  a wallet and gain access to web3
• (25:25) - Blockchain investigations tips to pursue illicit activity on digital asset networks

Related resources

Check out more resources provided by Chainalysis that perfectly complement this episode of the Public Key.

• Conference: Chainalysis Links 2023 Conference in NYC

• Public Key Podcast: Ep. 19: Pig Butchering Crypto Scam: Crypto’s Emerging Human Trafficking And Romance Scam Industry
• Devcon Recording::The $10B Problem - web3 Security Against Coordinated Adversaries | Devcon 
• Blog: FTX Investor Impact: Timeline of Realized Cryptocurrency Gains and Losses Shows FTX Hit Investor Wallets Less Than Previous Crises
• LinkedIn Newsletter: Chainalysis Monthly Roundup
• Twitter: Chainalysis Twitter: Building trust in blockchains
• Tik Tok: Chainalysis Tik Tok: Building trust in blockchains among people, businesses, and governments.
• Youtube: Chainalysis on Youtube

Speakers on today’s episode

• Ian Andrews * Host * (Chief Marketing Officer, Chainalysis) https://www.linkedin.com/in/ianhandrews
• Adam Hart (Senior Training Specialist, Chainalysis) https://www.linkedin.com/in/adam-hart-
• Julia Hardy  (Senior Investigator, Chainalysis) https://www.linkedin.com/in/julia-hardy  

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