Solidus Labs launches DEX-Based Insider Trading Detection tool to de-risk DeFi

Rick Steves

“Providing this level of transparency is a major step toward de-risking DeFi – allowing the industry and regulators to assess the true magnitude of insider trading in cryptocurrencies, investigate and root out rogue traders, and uphold fundamental market integrity and consumer protection standards.”

Solidus Labs has announced the launch of a DEX-Based Insider Trading Detection tool, which is already in use by some of Solidus’ clients including regulatory agencies.

The DEX-Based Insider Trading Detection tool combines on- and off-chain data to monitor major decentralized exchanges (DEXs) for token swaps indicative of insider trading.

“Major step toward de-risking DeFi”

Asaf Meir, Founder and CEO of Solidus Labs, commented: “Providing this level of transparency is a major step toward de-risking DeFi – allowing the industry and regulators to assess the true magnitude of insider trading in cryptocurrencies, investigate and root out rogue traders, and uphold fundamental market integrity and consumer protection standards.”

The DEX-Based Insider Trading Detection tool was built to address this growing market manipulation phenomenon in Crypto: insider trading. According to research, insiders may trade ahead of as many as 25% of all token listings using Decentralized Exchanges (DEXs), suggesting that the recent enforcement actions against insiders at centralized exchanges and NFT marketplaces could be the tip of the iceberg.

Solidus Labs provides trade surveillance, transaction monitoring, and threat intelligence to the crypto ecosystem, including all centralized and DeFi markets. The firm also founded initiatives like the Crypto Market Integrity Coalition and DACOM Summit.

DEX-Based Insider Trading Detection newest addition to Solidus HALO

The new crypto trade surveillance product for DeFi is the newest addition to Solidus HALO, the firm’s suite of crypto-native market integrity solutions. HALO is currently used to monitor more than 1 trillion events per day across more than 150 markets, protecting over 25 million retail and institutional entities.

The Solidus HALO was launched in 2022 and is an automated, comprehensive, and testable trade surveillance and market integrity hub tailored for digital assets. The trailblazer in the digital asset compliance technology space was built to safeguard businesses from a growing range of crypto-specific risks.

Solidus Labs believes HALO will be instrumental in shaping the future of financial risk monitoring as it provides Wall-Street grade crypto-native regulatory risk and compliance solutions that go beyond a growing client base of crypto and DeFi businesses. The solution is also meant for government agencies to create transparency, enable innovative regulatory frameworks and ensure safe and regulated crypto financial services in their jurisdictions.

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