This startup’s FailSafe approach to protecting the cryptosphere

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A plethora of new technologies like the metaverse, Web3, AI, crypto, and non-fungible tokens have emerged since the turn of the decade. Consumers have a lot to grasp before they can unlock the full potential of these up-and-coming tools.

But while humanity is perpetually on the edge of another groundbreaking innovation, there’s a need to upgrade and plug leaky holes in existing technologies.

For instance, the ongoing issue of theft has made a mockery of mass adoption efforts in the crypto industry. A staggering ​​US$20.1 billion in cryptocurrency was siphoned off in 2022, marking what research firm Chainalysis called “the biggest year ever for crypto hacking.”

Here’s where Eleos Labs, helmed by two Grab alumni, is looking to leave its mark. At the center of its ambitions to combat crypto fraud is FailSafe, a suite of applications designed to protect decentralized finance systems.

In today’s featured piece, Tech in Asia delves into the finer details of FailSafe’s unique mechanisms to detect potential fraudulent activity and gathers expert insights from Eleos Labs co-founder Gennady Medvinsky. Read on to learn more about the Singapore-based security firm.

Today we look at:

• Eleos Labs’ strategies to combat crypto theft
• Facebook’s plans to test a Twitter-like subscription service
• Other newsy highlights such as Alipay+ entering Australia and US regulators charging Terraform Labs’ boss with fraud

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Combatting crypto theft

Image credit: Timmy Loen

Despite being launched in Singapore earlier this month, Eleos Labs had already bagged US$8.7 million in seed funding in 2022. The security startup hopes that its products such as FailSafe can promote greater trust in Web3 and drive its mass adoption.

• Squad assembled: Eleos Labs is helmed by Wui Ngiap Foo and Gennady “Ari” Medvinsky. Foo is also the CEO and co-founder of Ethlas, a blockchain gaming platform. Both Eleos Labs and Ethlas will be brought together under a yet-to-be-formed parent firm. Ben Livshits, former CEO of Zilliqa Research and chief scientist at Brave Browser, has joined Eleos Labs as scientific adviser.
• Keep an eye on it: FailSafe uses both a reputation-scoring system and transaction intervention software, which watches a wallet for unusual activity. Medvinsky tells Tech in Asia that Eleos Labs used a “ton of information,” including previously sanctioned blockchain addresses, to help build its blacklist.
• In the works: According to general manager Aneirin Flynn, Eleos Labs is starting a pilot project with select partners and is in talks with crypto wallets and exchanges. It will also offer a virtual cold-wallet service, which will keep most of a client’s assets offline and unassessable. While keys and passwords stay with the clients, it won’t be a custodial service.

Read more: Grab, Microsoft alum look to combat crypto theft

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