CipherTrace: Cryptocurrency Theft Alarming at $4.4 Billion in 2019

According to a reportby CipherTrace, a blockchain forensics company, the cryptocurrency sector has lost a whopping $4.4 billion in scams and thefts so far this year, up by more than 150% from $1.7 billion in 2018.  

The study dubbed the “Q3 2019 Cryptocurrency Anti-Money Laundering (AML) Report,” which covers various issues, such as cryptocurrency regulation, prevailing sentiments, international trends, and impending legislation, among others. 

The report reveals that cryptocurrency theft has risen at an alarming rate in 2019 compared to 2018 because malpractices have been happening through crypto exchanges. This trend has been instigated by the urge of criminals to undertake bigger heists. 

Dave Jevans, CipherTrace CEO, noted: “The 150% increase in crypto theft and fraud reflects how criminals are adapting for bigger and better scores.”

He added: “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.”

CipherTrace stipulated that some of the biggest crypto thefts in 2019 included PlusToken, a Ponzi scheme involving crypto exchange and wallet, and customers lost $2.9 billion. Another one entails the loss of $195 million by QuadrigaCX customers that served as a Canadian crypto exchange before the abrupt death of its CEO and co-founder, Gerald Cotten. 

Regulatory scrutiny in the cryptocurrency sector is, however, being stepped up across the globe, as market participants and developers are seeking to penetrate the crypto space. 

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