Blockaid says it caused crypto drainer to shut down, defends against claims of 'false positives'

As a seasoned crypto investor and user of various decentralized applications (dApps) on different blockchain networks, I can’t help but be impressed by Blockaid’s unyielding commitment to securing the Web3 ecosystem. The recent shutdown of at least one notorious crypto drainer service due to Blockaid’s relentless efforts is a testament to their effectiveness.

I’ve observed firsthand how Blockaid’s Web3 security platform has forced at least one crypto drainer to call it quits in annoyance, as reported in an X post on April 25. Blockaid further clarified that a service free of false positives is an unattainable ideal, as it would inevitably allow some malicious apps to drain users’ funds.

I serve as an observer to the innovative realm of blockchain security, specifically focusing on the sector led by Blockaid. This company plays a pivotal role in safeguarding Ethereum Virtual Machine (EVM) networks such as Ethereum, BNB Chain, Polygon, Arbitrum, and more. By employing advanced techniques to identify malicious smart contracts, I help protect users from potential financial loss.

Blockaid shared an image of an alleged announcement from a cryptocurrency draining service, boasting about having closed down due to Blockaid’s interference and the decreased effectiveness of their schemes. The drainer team advised potential thieves against targeting networks commonly used by Blockaid users, warning that they were no longer lucrative. Instead, the team recommended using the Bitcoin or Solana network for draining activities, but noted that Blockaid’s software does not support these networks at present.

Blockaid says it caused crypto drainer to shut down, defends against claims of 'false positives'

In the ongoing discussion about “false positives” or instances where harmless apps are mistakenly identified as harmful by security services like Blockaid, the team conceded that such errors occur occasionally. Specifically, they mentioned that less than 0.0002% of transactions result in these mistakes. However, they emphasized that striving for a 100% false positive-free environment is not feasible or desirable since it would inevitably lead to allowing malicious apps to slip through the cracks and potentially cause harm to users.

“The statistical nature of these systems means that we have to work towards striking a balance: having zero false positives inevitably means that malicious transactions will get through the defenses, resulting in easy to develop bypasses, and ultimately not disrupting the drainer economy.”

Similarly, Blockaid expressed its intention to minimize false positives even more. To achieve this goal, the company unveiled a new reporting system through a web portal. By enabling users and developers to submit errors they encounter, Blockaid aims to identify and rectify false positives in a timely manner.

Approximately $300 million was stolen from Web3 users in 2023, as indicated in a report by cybersecurity firm Scam Sniffer specializing in Web3 security. Notably, Blockaid’s service was integrated into MetaMask, a popular Web3 wallet with over 30 million users, during October of the same year. Coinbase wallet, another widely-used wallet, discreetly added this feature five months prior to the announcement on March 13, 2024.

2024-04-25 21:38

Blockaid says it caused crypto drainer to shut down, defends against claims of ‘false positives’

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