The Nexo collaboration with Sift aims to safeguard digital assets, identify fraud, and streamline transactions on the Nexo platform.
Nexo has announced a strategic partnership with Sift, a digital trust and safety company. This collaboration aims to enhance Nexo’s security measures and streamline the user experience across its platform.
To bolster its defense against fraudulent activities and improve operational efficiency, Nexo will integrate Sift’s advanced technology into its platform. Sift’s machine learning and AI-driven solutions are designed to identify and prevent fraudulent transactions in real-time, ensuring a safer environment for Nexo’s users.
Intro to Digital Trust & Safety With Sift
The partnership comes at a crucial time as the digital finance sector experiences rapid growth, accompanied by an increase in sophisticated cyber threats. By leveraging Sift’s technology, Nexo says it is attempting to stay ahead of potential digital risks, safeguarding its users’ assets and personal information.
Furthermore, Nexo says the collaboration should enhance the overall user experience on its platform. By reducing friction in legitimate transactions and streamlining the verification processes, Nexo says transactions should process more quickly and be more streamlined.
Crypto Criminality Down
The Nexo/Sift collaboration comes as overall crypto criminality is on the decline, according to a recent Chainalysis report “2024 Crypto Crime Trends”. According to the report in 2023, the landscape of cryptocurrency-related crime experienced a notable shift, with overall illicit activities and the amount of funds stolen through scams witnessing a decline.
The report said the total value transferred to illicit cryptocurrency addresses fell to $24.2 billion in 2023, marking a 39% decrease from the $39.6 billion recorded in 2022. Furthermore, the proportion of illicit transactions in relation to the total cryptocurrency transaction volume dropped to 0.34% in 2023, a 20% reduction from the 0.42% observed in the previous year.
This decrease in crypto-related crime is a positive development for the digital asset industry, challenging the narrative of some US politicians who often criticize the sector for its association with illegal activities.
The report also noted a shift in the methods of illicit transactions, with stablecoins becoming the predominant currency for illegal transactions. However, certain types of criminal activity, such as ransomware, continue to rely heavily on Bitcoin.
