News Cryptocurrency crime surges, losses hit $4.4 billion by end-September:...

Cryptocurrency crime surges, losses hit $4.4 billion by end-September: CipherTrace report

-

- Advertisment -

NEW YORK (Reuters) – Cryptocurrency theft has surged in 2019 compared with last year, with more money flowing through digital exchanges and criminals looking to carry out bigger heists, according to a report from blockchain forensics company CipherTrace obtained by Reuters.

Losses from digital currency crime soared to $4.4 billion in the first nine months of the year, up more than 150% from $1.7 billion in all of 2018.

“The 150% increase in crypto theft and fraud reflects how criminals are adapting for bigger and better scores,” Dave Jevans, CipherTrace chief executive officer, told Reuters.

“Criminals chase money and the money is right here and ripe for the taking. Little attacks are often easy to defend against, but targeted attacks are far more lucrative,” he added.

Cryptocurrencies have attracted intense regulatory scrutiny around the world, as developers and market participants in the space seek to push this asset class into the mainstream.

Two large thefts were the main drivers for the surge this year, CipherTrace said.

One of the frauds saw users and customers lose $2.9 billion from an alleged Ponzi scheme involving crypto wallet and exchange, PlusToken.

The other significant fraud this year was the $195 million that customers lost from Canadian crypto exchange QuadrigaCX following the unexpected of its 30-year-old co-founder and CEO, Gerald Cotten.

“Even without the two biggest thefts and scams, we are still witnessing many multi-million dollar crimes,” Jevans said. “There is a relatively consistent increase in criminal activity year over year and we don’t expect that to change overnight.”

He added that crimes valued under $5 million are often underreported, as exchanges and police teams focus on the bigger more existential threats to businesses.

CipherTrace reported that the sector saw just $15.5 million in quarterly thefts and scams in the third quarter, the lowest in two years.

Jevans said that while the industry may be seeing fewer reported attacks, criminals were still making out with “bigger wheelbarrows of cash.”

CipherTrace had previously noted that the type of crime in the crypto sector had shifted from outright thefts to exit scams and other frauds perpetrated by insiders, which showed exchanges have become tougher for criminals to hack.

“Today’s attackers are patient and willing to spend more time waiting for a payout,” said Jevans. “Not only have we seen more and more $100 million thefts and scams, those responsible are acting carefully, only cashing out small amounts to stay under the radar.”

The report also showed that of the top 120 global crypto exchanges, 65% have weak know-your-customer (KYC) requirements.

“It will no doubt have implications as regulators seek to have KYC information shared globally,” said CipherTrace.

Source

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

Make Fast and Secure Trades Using Bitengo.io

Bitengo.io is a Cryptocurrency trading platform that allows users to buy and sell their Cryptocurrency in a...

Network Security Using Cryptography: Everything you need to know

This article will describe what is Network Security Using Cryptography and everything you need to know before...

Mercuriex Cryptocurrency Exchange Launches New Utility Token, SURF

MercuriEx Cryptocurrency Exchange, originally developed in 2017, came under new ownership in December 2019. Since taking over the exchange,...

Fungibility: Bitcoin Mixers Favorite Term That No One Understands

Fungibility, perhaps the most important concept when dealing with a decentralized and anonymous currency, but does bitcoin...
- Advertisement -Cryptocurrency crime surges, losses hit $4.4 billion by end-September: CipherTrace report

Crypto can’t thrive in the real world – but stablecoins can

We can safely say that the hype about cryptocurrencies is pretty much over. The claims of Bitcoin...

How to double your crypto

Most of us have a small gambler deep inside our souls. We love to feel the thrill...

Must read

Make Fast and Secure Trades Using Bitengo.io

Bitengo.io is a Cryptocurrency trading platform that...
- Advertisement -Cryptocurrency crime surges, losses hit $4.4 billion by end-September: CipherTrace reportCryptocurrency crime surges, losses hit $4.4 billion by end-September: CipherTrace report

You might also likeRELATED
Recommended to you