Guernsey’s ITI Funds buying crypto fraud detection device from global blockchain firm

By Andrei Skvarsky.

Guernsey-based investment manager ITI Funds has clinched a deal with a global blockchain developer to obtain a device to scour planned cryptocurrency transactions for potential fraud.

The device the Guernsey firm is buying from The Bitfury Group would be based on Crystal, a platform for the real-time scrutiny of crypto deals on public blockchains, ITI Funds, a company running a six-month-old platform for crypto funds with assets worth more than $80m under management and a crypto index monitoring nine cryptocurrencies, said in a statement.

Designed for law enforcement agencies and financial institutions, Crystal enables its users to trace the fund source for a specified wallet and spot any potential connection to illicit activities or darknet counterparties, ITI said.

Crystal can also help find out the nature of a relationship between known criminal actors, according to the statement.

ITI Funds would use tailor-made Crystal solutions in Luxembourg, the Cayman Islands and other jurisdictions where the firm is active.

ITI Funds argued in its statement that the world crypto market is being institutionalised and that this is “one of the biggest trends” in it.

In supporting this point, the firm quoted Morgan Stanley as saying that the crypto market has passed the speculative stage and that its future lies within institutionalisation.

It also cited Circle, a Boston-based payments technology company backed by Goldman Sachs, as predicting a massive inflow of institutional money into the crypto world in 2019.

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