Chainalysis, a New York-based blockchain knowledge platform, has introduced on Monday that it’s going to begin protecting the so-called meme coin, Dogecoin (DOGE). The choice comes within the wake of the rising recognition of the cryptocurrency attributable to its widespread endorsement by high-profile personalities equivalent to Tesla’s CEO, Elon Musk, however on the similar it, the corporate says the coin has been catching the eye of criminals.
Throughout the announcement, Chainalysis quoted the quantity figures that Dogecoin has been printing up to now this 12 months. Additionally, the agency says that it has naturally led to an elevated utilization of the meme coin for prison functions.
“We’ve seen a number of thefts and scams involving Dogecoin this 12 months, together with one giveaway rip-off that netted fraudsters over $40,000 after they promoted a bogus, Elon Musk-led initiative to pay customers 10x again on any cryptocurrency despatched to an deal with they supplied, utilizing hacked Twitter accounts to advertise the rip-off following the Tesla CEO’s internet hosting look on Saturday Evening Reside. Dogecoin has additionally turn into in style in high-risk jurisdictions like Iran,” Chainalysis stated. Moreover, the analytical firm commented that Dogecoin had turn into a “incessantly requested” crypto from prospects to cowl inside their reviews.
Faux Giveaway with Dogecoin
The giveaway rip-off talked about by Chainalysis occurred in Might when cybercriminals took benefit of Musk’s look on Saturday Evening Reside to launch such fraudulent giveaway marketing campaign by way of Twitter. Studies famous that hackers netted round $100,000 in Bitcoin (BTC), Ethereum (ETH), and Dogecoin. Sadly, victims fell prey to the rip-off by sending small quantities of the crypto, because the fraudsters promised to return ten occasions the quantity invested within the giveaway.
The announcement comes after the blockchain agency secured $100 million within the newest Sequence E funding spherical led by the US-based firm, Coatue. As well as, Chainalysis’ current buyers, together with Benchmark, Accel, Addition, Dragoneer, Sturdy Capital Companions, and 9Yards Capital, additionally elevated their funding within the blockchain evaluation agency.