Exchanges Increase Security To Prevent Scammers

In this regard the Ethereum network is already acting as a temporary hindrance for scammers as transactions get stuck due to the ETH network congestion, which is ironically a very minor issue in the current scalability issues faced by the second largest blockchain network.

However, the biggest barrier to liquidation of PlusToken funds is KYC (know-your-customer) standards.

KYC does require a user to divulge their identity to the exchange, if done correctly, KYC can end up arresting the person or person selling the stolen asset. As previously reported, most of the BTC sales made by PlusToken took place on the Huobi and Okex exchanges where KYC and AML policies were not sufficient to stop the scammers.

After graduation, Huobi worked hard to raise its safety standards since the last wave of BTC PlusToken sales was detected. The Exchange also recently launched an on-chain monitoring tool called Star Atlas to identify “crimes such as fraud, money laundering and other problematic activities” on their platform.

Many of the exchanges are aware of KYC and continue to improve security in order to guard against criminal activities.