The CertiK KYC is an in-depth due diligence process that includes a full background check and verification of the history of every key team member. The CertiK KYC goes far beyond a traditional KYC (read more about the difference between a CertiK KYC vs. a regular KYC here).
In June 2022, CertiK found evidence that CertiK KYC Badge client, Zoro Inu ($zoro), rug pulled. Here is how CertiK responded to the event and why the CertiK KYC makes it possible for malicious actors to be held accountable in the event of alleged criminal activity:
In June 2022, CertiK completed an investigation of Zoro Inu ($zoro) and found evidence of a Zoro Inu team exit scam; commonly known as a rug pull. Zoro Inu was KYC’d by CertiK in May 2022, in which all core team members underwent a thorough background investigation and all of the respective team identities were identified and collected.
Once the Zoro Inu alleged rug pull was detected, CertiK notified communities of the ongoing investigation through the CertiK Alert Twitter via the following thread. The Zoro Inu KYC information made it especially easy to identify all of the members of Zoro Inu who were potentially involved in the rug pull, and as a result, CertiK was able to respond promptly and comprehensively to ensure that the team was investigated by law enforcement.
CertiK’s KYC is designed to hold projects accountable if any fraudulent or illegal behavior is observed. CertiK took, and continues to take, any and all measures to ensure the Zoro Inu team is brought to justice for defrauding investors. In response, our experienced team of law enforcement investigators and military intelligence analysts conducted a comprehensive investigation and liaised with law enforcement authorities to ensure they have all of the detailed KYC information needed to prosecute the criminals.
As a result of CertiK’s investigation of Zoro Inu, the findings and identities were submitted directly to the Federal Bureau of Investigation (FBI). CertiK is continuing to work closely with law enforcement to share evidence of the alleged crimes and team details collected during the KYC process. This example further highlights CertiK’s commitment to holding teams accountable through the CertiK KYC.
Tracking the identities of criminals who commit rug pulls is much more difficult for projects that are completely anonymous. However, since the Zoro Inu team had KYC’d with CertiK, the Zoro Inu team information and all relevant findings are now being examined by law enforcement for potential criminal prosecution.
CertiK continues to work with law enforcement on the Zoro Inu investigation. The experienced team of investigators at CertiK make it possible to detect fraudulent activity, investigate malicious events, accurately curate reports for law enforcement, and utilize existing law enforcement relationships to fully report any and all cases like Zoro Inu. Our KYC and enhanced due diligence offers the highest level of verification on the market and allows for the early detection of potential threats and guarantees that if alleged criminal activity occurs, that CertiK will do everything necessary for law enforcement to investigate these instances.
If you have any information or evidence of suspected malicious activity, please reach out to CertiK through the ‘Report Incident Section’ on the website.