In February 2020, Nationella Operativa Avdelningen (NOA), Swedish national police, brought charges to dark market Flugsvamp 2.0. The police further detailed that 4,244 account have been suspended with Safello, a small fraction of Safello's user base. To address our cooperation and the accounts we suspended, we wanted to clarify our standpoint.
As a financial institution regulated by Finansinspektionen, Safello is following the European Anti-Money Laundering regulation with its Swedish implementation therefore. While the perception is that cryptocurrencies like bitcoin are anonymous, we have tools at our disposal to identify persons and tie them to their activities. Furthermore, we are a member of the Fintech FinCrime Exchange (FFE) network where we share information to combat such activities as well. Gathered information and activities we report to the authorities to help their investigations, as was the case here.
Cryptocurrencies hold great promise for the future to create more financial freedom. The vast majority of the hundreds of thousands orders on Safello's platform are done by genuine crypto enthusiasts who are rapidly growing in numbers. Illegal use gives cryptocurrencies a bad name. At Safello (your Safe Fellow) we have always stood up against these activities while being a force of progress for the cryptocurrency as a whole.” - Frank Schuil, CEO and Co-Founder of Safello.com
By cooperating with crypto forensics firms and through numerous others technical and non-technical means we stay on the forefront of keeping nefarious activities at bay and we support authorities by sharing information on these activities as well as through education. This we do both publicly on for example The Safello Show, workshops and privately to law enforcement. The reason we do this is because it the only way to see cryptocurrencies and the wider blockchain space get mass adoption. We want to create a broad and mutual understanding of what can and cannot be done and should and should not be supported, much like information is free and restricted on the Internet based on an ethical and legal framework.
To learn more about crypto forensics, watch our interview on The Safello Show with Sven Martinsson from crypto forensics firm Valega Chain Analytics or any of the other shows that we have put up on our blog.