Web3 Project Security: Risk Assessment and Fund Tracking

With the development of blockchain technology, Web3 projects are increasingly gaining attention. However, some malicious projects attract investors through false advertising and excessive marketing. They may use means such as promises of high returns, flashy advertisements, false data, and fabricated backgrounds to deceive trust. Once investors fall for these promotions, they may follow blindly, ultimately leading to investment losses.

Moreover, some project teams may maliciously dump their tokens during a downturn in the cryptocurrency market, forcing investors to sell at a loss and profiting enormously from it. This not only severely harms investors' interests but also threatens the stability of the entire cryptocurrency market.

To address these risks, some security companies offer risk assessment services for Web3 projects. This service evaluates project risks through multiple criteria from both on-chain and off-chain perspectives, including 17 on-chain criteria and 9 off-chain criteria, providing a comprehensive security assessment of the project.

During the evaluation process, the security team will comprehensively gather project information, analyze on-chain fund transaction conditions and project promotional information, and determine whether the fund flow during the project's operation aligns with the documentation description. This specifically includes:

• Is the distribution of the project tokens consistent with the documentation?
• Does the contract logic match the content of the project documentation?
• Is there malicious market dumping behavior?
• Are there any contract privilege roles that engage in malicious behavior for profit?
• Is the official operation timeline reasonable?

When it is confirmed that the project party is engaging in illegal profits, assistance can be sought through cryptocurrency tracking services. These services can help clients understand transaction history and fund flows, including information such as transaction amounts, times, transfer directions, and destinations.

Cryptocurrency tracking services mainly include two directions: tracking malicious profit funds of project parties and tracking stolen funds.

In the malicious profit tracking of project parties, the security team will conduct an in-depth analysis of the capital flow of the project parties, comparing promotional documents from different periods, and tracking malicious dumping addresses to help investors recover funds. This process involves both on-chain and off-chain tracking methods, with particular attention paid to various on-chain capital flow situations, including the sources of fees for the project parties.

For tracking stolen funds, after confirming the stolen address, amount, and time, the security team will trace and monitor the relevant addresses while using the tag library to confirm the flow of funds. If the funds enter an exchange, attacker information can be obtained through investigation and evidence collection; if the funds flow into a mixing platform, more in-depth analysis and evidence collection will be needed to identify the attacker.

It is worth noting that due to the nature of blockchain, complete accuracy of data cannot be guaranteed. Therefore, investors should remain vigilant and carefully select Web3 projects. Before investing, one should thoroughly review the project's official documentation and gain a deep understanding of the project's actual situation to avoid blindly following trends.

If unfortunately encountering theft of funds, investors should promptly seek help from professional security teams to recover funds as soon as possible through legal means. In the Web3 world, protecting one's asset security is crucial, requiring vigilance and the effective use of various security tools and services.