Several years have gone by since Geoffrey Arone lost access to his Dogecoin because the exchange hosting them got hacked. While he admits he would have probably sold off the tokens long before making millions, the experience left a lasting impression that he's channeled into a new venture to help individuals and institutions fend off bad actors.

“We provide on-demand infrastructure and developer tools that allow anyone working with crypto to instantly fire up a node that has a built-in AI that enforces security, policy, and compliance,” he said of his new company dubbed Shield3, adding that the startup utilizes artificial intelligence in conjunction with data on both government-sanctioned wallets and known crypto villains.

From the individual investor perspective, Arone said the service is able to evaluate smart contracts on DAOs and NFT projects in order to scan for anomalies. If the system finds inconsistencies, Shield3 will flag or block transactions before they occur.

Larger exchanges and wallets

Arone said he's also talked to “larger exchanges and wallets, integrated with exchanges” interested in his products. He believes banks will need to find partners that can bolster security with advanced technologies.

“Everyone can tell them till they are blue in the face, 'You guys definitely need to have a fund that focuses on Ethereum and ERC-20 tokens,’ but how do they know that the assets and addresses they are interacting with are not originating from high-risk, non-compliant, or government sanctioned wallets?”

Arone, a co-founder and CEO of the new firm, previously worked as a limited partner at the small web3 investment firm Arrington XRP Capital. He was also once an innovation executive at Experian.

source:theblock