Inside the War on Crypto Scams: Crystal Intelligence Leads the Charge

Inside the War on Crypto Scams: Crystal Intelligence Leads the Charge

As crypto scams evolve into fast-moving, cross-chain threats, blockchain investigators from Crystal Intelligence reveal how they are staying one step ahead.

From Simple Thefts to Sophisticated Schemes

Crypto crime is no longer the domain of lone hackers or amateur fraudsters. Today’s threats involve multi-chain laundering, decentralized finance (DeFi) abuse, and real-time cross-border fund movement, making traditional defense tactics ineffective.

Crystal Intelligence, a blockchain analytics firm, is on the frontlines of this digital battlefield. By offering real-time monitoring, risk scoring, and blockchain attribution, they’re helping clients trace stolen funds before they vanish into untraceable digital channels.

Global Insights, Local Precision

With a team fluent in languages across the Middle East, North Africa, and Asia-Pacific, Crystal is positioned to decode regional criminal behavior and jurisdiction-specific risk. This localized understanding provides actionable intelligence for global law enforcement and financial institutions navigating high-risk territories.

How Criminals Evade Detection

Scammers no longer rely on centralized exchanges or basic Bitcoin mixers. They now move funds via token bridges, DeFi swaps, and DEXs, bypassing KYC controls. This makes it much harder to track or recover stolen assets, especially as funds leap from blockchain to blockchain in minutes.

“The tools are getting more advanced—but so are the criminals,” said Federico Paesano, senior investigator at Crystal. “We now trace activities through dozens of wallets across multiple chains in real time.”

Stopping Scams in Real Time

Speed is everything. According to Paesano, Crystal’s platform can identify suspicious wallet behavior within minutes, allowing them to alert exchanges and law enforcement fast enough to freeze assets before they disappear.

In one case, stolen funds were redirected across multiple wallets within seconds. Thanks to Crystal’s real-time alerts, a major exchange froze the assets before they were cashed out. The funds were later recovered.

Tools Designed for Action

Investigation tools are only useful if they can be used quickly. Crystal’s visual interface maps out suspicious transactions and links addresses to real-world entities. Combined with verified attribution data, this enables rapid, informed responses to ongoing attacks.

“Even law enforcement teams without deep technical backgrounds can trace crypto assets confidently,” said Paesano.

Emerging Threats: AI and Social Engineering

Andrii Sovershennyi, Crystal’s lead investigator, warns that AI-enhanced fraud is the next frontier. Criminals now use fake voices, video deepfakes, and impersonation scams to breach even the most cautious users.

“It’s not just about protecting your wallet anymore,” he said. “It’s about verifying everything—from voices to customer service chats.”

Advice for Crypto Investors and Businesses

• Follow industry standards like the Cryptocurrency Security Standard (CCSS) to protect assets.

• Use regulated exchanges listed with national financial regulators.

• Rely on tools and firms that offer real-time fraud detection and KYC-compliant protocols.

• Visit IOSCO and other global watchdog sites to check for warning lists and investor alerts.

Crystal Intelligence offers public resources for scam victims and collaborates globally to push back against crypto crime.