Our algorithms detect and report all stolen money. Lawyers can thus see which money is laundered on which exchanges
Suat Özkan, the co-founder and CEO of Defiy, a domestic initiative that enables the detection of cryptocurrencies and wallets used in money laundering and fraud, spoke privately to Kriptokoin.com.
Ozkan, who has embodied his corporate experience in many fields such as blockchain, cloud services and software for 10 years, explains that they started to develop products in this field upon the need of one of his lawyer friends: “We were following blockchain networks and developing our products through instant security services. We worked on the need of a lawyer friend at a blockchain event we attended and we realized that there is a general need in this regard. He stated that he could not detect and follow up on stolen money and fraud issues. The application we developed, on the other hand, was able to monitor all transactions instantly. Then we focused on tracking stolen money transactions.”
Expressing that manual transactions are made very frequently and that a technical man is involved in processes that cannot be solved even in a few days, Özkan says that they have made this process easier and reduced to a single button: “Our algorithms detect and report all the stolen money. So lawyers can see which money was laundered on which exchanges.”
“We find the real source of black money”
Özkan underlines that their aim is to find the real source of the black money by combining the pieces of money: “Scammers usually launder money by circulating it on the stock markets. They split the money into pieces. Our goal here is to combine the fragmented coins and find the real source of the money. Our infrastructure solves this structure algorithmically. We solve the transaction ID going to the addressee in the stock market. Exchanges already receive user information with KYC. Thus, the owner of the transaction is found and a lawsuit is filed.”
Defiy has cleared more than $5 million in money laundering since its founding last year. Stating that the Live AML service is their locomotive product, Özkan explains the operation as follows: “Let’s say that a corporate company has 5 thousand users. They do not need to question 5 thousand users continuously or periodically. Thanks to our service, when that fraudulent transaction is made in any wallet, that business is informed. Suppose the stolen money remained in the wallet, not the cryptocurrency exchange. Then, when you download our Defiy application and follow the wallet, you will be notified when any action occurs in that wallet. Thus, we provide end-to-end live tracking.”
“Our ultimate goal is to work with public institutions”
We ask Özkan whether they have contacted public institutions that focus on money laundering, such as MASAK: “Not yet. We are thinking. The products we have developed are a product that will work for them. The services we currently offer and the businesses we contact are mostly associations. We work with the Cryptocurrency Market Monitoring and Evaluation Association and businesses. Private businesses use it both for regulatory compliance and for their own security. Let me just give my report, more than just to make myself safe, if any of their customers are involved in illegal money laundering, they protect themselves with the thought that the same incident will harm me. There are no public institutions among the organizations we provide end-to-end service. But our ultimate goal is definitely to work with public institutions that focus on this area as well.”
Saying that they are the only Turkish company among the seven companies that TOGG has done POC (proof-of-concept) work with startups, Özkan explains that they started to work with leading banks in Turkey: “Actually, almost all banks are currently working on crypto currency trading. We have entered the second phase with a bank we are currently working with. Our most popular product is Live AML. There is a cumbersomeness in other AML services: You can be informed when a customer of yours comes to you after making an illegal transaction somewhere. But knowing that your customer there is involved in stolen money or is involved in an incident increases your action speed. They can react instantly. Therefore, it is a very sensitive issue in matters such as banking, where money is in a critical position.”
Defiy has so far received seed investment from Alesta Yatırım and Sertaç Özünal. Özkan adds that they are preparing for the second investment round.
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