Modulus Crypto Exchange Technology Incorporates CipherTrace’s AML Solutions

Modulus Incorporates CipherTrace’s AML solutions to Make Exchanges Safer From Criminals

Modulus has partnered with CipherTrace to provide industry leading anti-money laundering (AML) solutions for Modulus’ crypto exchange solution. Modulus, a US based company, develops ultra high performance trading and global surveillance technology that is used to power various global equity, derivative and cryptocurrency exchanges. CipherTrace, on the other hand develops anti money laundering technology that identifies and scores a number of AML risks such as criminal activity, dark markets, money laundering and mixing services, stolen cryptocurrencies, terrorist financing, gambling services, ransomware, and investment scams.

According to Modulus CEO, the AML technology will enable its users maintain a low risk profile and provide a safe avenue for them to grow their exchanges. He said,

“Our exchange solution has broken records as the fastest and most scalable in the world. Now we are breaking records as the safest and most secure solution in the industry.”

Modulus had earlier launched its own Market Surveillance and Risk Management Solution. The solution offered ultra low latency risk management both on pre-trade and at-trade and provides post-trade surveillance with AML capabilities. This solution uses machine learning to identify and deal with issues such as market manipulation, abusive trading behavior and money laundering. The CipherTrace AML technology will work together with Modulus’ own solution in order to further enhance safety for exchanges that use its services.

CipherTrace CEO, Dave Jevans points out that close to USD 1 billion in cryptocurrency has been stolen in 2018 alone.

“Cryptocurrency stolen … needs to be laundered before criminals can spend it,” he continues.

In his view, exchanges provide a great avenue for money laundering due to their significant volumes and high speed. Cipher has developed a comprehensive crypto asset risk management framework in collaboration with regulators to facilitate a safe and secure crypto economy.

A report released last week from the New York Attorney General’s office finds that cryptocurrencies are yet to achieve market surveillance capacities such as those found in traditional trading platforms which help identify and punish suspicious trading activities. The report adds that,

“A platform cannot take action to protect customers from market manipulation and other abuses if it is not aware of those practices in the first place.”

However, CipherTrace has been leading the way in developing solutions against money laundering and market manipulation. Modulus CEO agrees that the issues raised in the report are valid concerns but assures users that the implementation of CipherTrace technology safeguards investors from bad actors.

Stephen Ryan, COO of CipherTrace also expressed his excitement in the partnership with Modulus and its clientele of crypto exchanges. He describes the CipherTrace technology as plug compatible with the existing Modulus exchange platform and that it will enable the exchanges to grow while remaining compliant to regulatory requirements. Features that are available for a start include risk score for both Bitcoin and Ethereum transactions.

Modulus has been in operation since 1997, developing high frequency trading platforms, exchanges, trade surveillance and risk management systems. Its products have been used by professional traders, brokerages, trading firms, exchanges, educational, government and nonprofit organizations spread across 94 countries. Besides AML solutions, CipherTrace also creates bitcoin forensics and blockchain threat intelligence solutions. Some of its clients include leading exchanges, banks, investigators, regulators and digital asset businesses. It was founded in 2015 by a team with expertise in cyber security, eCrime, payments, banking, encryption, and virtual currencies.

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