Cryptocurrency exchange Easy Crypto turns away millions in customer orders in world-first disclosure
Cryptocurrency exchange Easy Crypto has transacted over AUD$3 billion in total sales to date but it’s pinning its success on another more important number: the amount of money returned to its customers dealing with fraud or scams. The exchange has become the first globally to publicly disclose this number on its website – which now sits at AUD$2,505,258 (recovered between July 2022 to April 2024).
Earlier this year, Easy Crypto commissioned new research through global consumer insights company Protocol Theory which uncovered that investors want the industry to ‘level up’ in terms of providing a safe, secure investment environment.
“Crypto is no longer a ‘fringe asset’. Almost 50% of Australians are open to buying 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,” said Easy Crypto’s Co-Founder and CEO Janine Grainger.
With enhanced security that includes blockchain analytics, the exchange regularly refuses to take a user’s money when it suspects users are being taken advantage of or scammed. What’s more, it has the most comprehensive programme of engagement with banks in APAC around fraud and scams. “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,” believes Janine.
Security isn’t a case of ‘set and forget’
At Easy Crypto, keeping customers safe involves more than just setting up security measures – it’s about actively monitoring every transaction. “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,” explained Janine Grainger. She adds that industry best practice requires daily monitoring to identify risks as they emerge and take action before customers are affected.
The exchange’s approach to security includes:
Customer identification and verification – Easy Crypto ensures every user is legitimate through stringent Know Your Customer (KYC) procedures which help prevent fraud, money laundering, and illegal activity, creating a trustworthy investment environment. Additionally, the exchange complies with global Anti-Money Laundering (AML) regulations, constantly monitoring for suspicious behaviour to protect users from potential threats.
Transaction monitoring – The platform uses a range of sources from blockchain data to behavioural analytics to monitor trading patterns, flag unusual activity and stop potential fraud before it escalates. Additionally, Easy Crypto sets transaction limits on amounts or their frequency, safeguarding users from significant losses and unauthorised access.
Security measures – Easy Crypto enhances security by requiring Multi-Factor Authentication (MFA) for logins, adding an extra layer of protection beyond passwords. The exchange also educates users about phishing scams and implements detection measures to block them. Customers are also encouraged to use their own secure wallets, ensuring their funds remain secure and independent of third-party platforms.
Customer education – Easy Crypto prioritises scam awareness, regularly educating users on how to spot fraudulent schemes with resources and updates. The exchange also offers best practice guidelines on account security, from setting strong passwords to keeping wallet keys safe.
The anatomy of scams
Recent scams the exchange has prevented fall into three main categories, including ‘job scams’ in which customers are tricked into becoming a money mule through a fake work-from-home job offer; ‘investment scam’ that promise guaranteed high returns on a crypto investment and ‘ponzi scheme’ in which customers are lured in with promises of high profits by recruiting others. In all of these cases, Easy Crypto flags the risk, and intervenes appropriately by advising against proceeding.
Outspoken about self-custody
Whilst most exchanges offer ‘custody’ of investor funds, Easy Crypto is unapologetically non-custodial. “Crypto exchanges who take custody of investor funds are simply replacing centralised control with another form of centralised control. 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,” explained Grainger.
Janine Grainger is a member of the Digital Trust Working Group formed in 2023 to advise APEC; and was invited to join the V20 virtual asset summit, as part of the 2022 G20.
“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,” Grainger concluded.
