Easy Crypto reveals $2.7m returned to fraud victims

Easy Crypto has announced its position as the first cryptocurrency exchange globally to disclose the value of funds returned to customers who have fallen victim to fraud or scams.

The disclosed amount, now publicly available on their website, totals AUD $2.5 million / NZD $2.7 million and covers the period from July 2022 to April 2024.

The announcement comes alongside the revelation that Easy Crypto has transacted over AUD $2.7 billion / NZD $3 billion in total sales to date. However, the company emphasises the importance of its efforts in fraud prevention and customer protection over sales figures. Janine Grainger, Co-Founder and CEO of Easy Crypto, noted the shifting perception of cryptocurrencies and the need for increased safety in the industry. "Crypto is no longer a 'fringe asset'.

50% of Australians are open to buying crypto in the next 12 months, and close to 50% of New Zealanders own, have owned, or are considering future investment in crypto in the next 12 months. It's here to stay, and we're committed to making sure the industry is as safe and trustworthy as possible," Grainger stated.

The company's measures intercept various types of scams, including job scams, investment scams, and Ponzi schemes. Job scams duping customers into becoming unwitting money mules through fake work-from-home offers and investment scams falsely promising high returns on crypto investments have all been notably intercepted. "We regularly update the industry's biggest players on the most recent scams and measures that can be taken to prevent them. This is critical because each industry operator understands a piece of the larger financial crimes puzzle; but when we pool our knowledge, our ability to identify and combat this type of activity improves exponentially," Grainger elaborated.

Security at Easy Crypto is characterised by constant monitoring and engagement rather than static measures. "Security is a foundational design principle in terms of our products, processes and procedures, but without continuous vigilance, it's just a house of cards," said Grainger. Emphasising the need for active measures, she explained that daily monitoring is crucial to identify and mitigate risks before they significantly affect customers.

Easy Crypto employs a multifaceted approach to ensure user security.

This includes stringent Know Your Customer (KYC) procedures, compliance with global Anti-Money Laundering (AML) regulations, and ongoing transaction monitoring through blockchain data and behavioural analytics. The platform requires Multi-Factor Authentication (MFA) for all logins and educates users on phishing scams. Additionally, the platform encourages the use of secure personal wallets, promotes user autonomy, and ensures that funds remain protected from third-party platform vulnerabilities.

The exchange has also been vocal about the differences between custodial and non-custodial models. "Crypto exchanges that take custody of investor funds are simply replacing centralised control with another form of centralised control," Grainger remarked.

Highlighting the advantages of a non-custodial model, she added, "At the heart of the non-custodial exchange model in which users purchase crypto to be sent to their own wallet lies a revolutionary approach that emphasises user autonomy and security in which each user becomes their own 'bank' and manages their own crypto."

Janine Grainger's active roles in the Digital Trust Working Group at APEC and the V20 virtual asset summit underline her commitment to industry transparency and cooperation. "Transparency is key to keeping our industry honest."

"There's no one-size-fits-all solution, but by openly disclosing fraudulent transactions, we hope to inspire collaboration across the financial sector. By working together, we can create a safer, more secure crypto environment for everyone," she concluded.