Blockchain Startup Spring Labs Detects $10 Million in Loan Fraud

Spring Labs, the blockchain startup advised by Sheila Bair and Gary Cohn, has helped catch $10 million in fraud in a part of the energy loan market using its private network technology.

The Los Angeles-based firm began checking for a type of fraud known as lien stacking in July, Chief Executive Officer Adam Jiwan said in an interview.

Lien stacking involves a contractor applying to several lenders for a loan through the Property Assessed Clean Energy, or PACE, program that helps homeowners and businesses finance upgrades or renewable-energy installations. Because lenders haven’t historically had a safe way to share ...