crypto crime

Crypto Crime Is Now At Its Peak

Crime is always a crime. Whether it is big or small that’s not a factor. But it is the time to ponder a proper legal system that needs to be established according to the crime. Why did I say that? Because Crypto Crime is now rising! Though some people have been telling that it is under the control meaning still under 1% of transactions. But last year, the losses from cryptocurrency waved to $4.52 Billion. Oh my God! This is actually more than double. Can you imagine that?

CipherTrace Report

CipherTrace, a blockchain forensics company. According to them, the last year’s total losses nearly 160% from 2018’s total of $1.74 billion. In the latest Q4 2019 Cryptocurrency Anti-Money Laundering Report, CipherTrace presented a holistic year report. 

The report states that crypto-related theft, fraud surged as compare to the hacking. And that is actually almost 160% means staggering $4.52 billion. Hence, this includes $370.7 million lost in exchange thefts and hack and $4.1 billion of losses from fraud and embezzlement of funds.

Blockchain first emerged as the system powering bitcoin. And the shared database is maintained by a network of computers. In spite of the blockchain boundary, our crypto money is not safe. Most cryptocurrency user and investor losses due to fraud and embezzlement in 2019. And that increased by more than five times, while hacks and thefts fell by 66%, the report showed. So we can easily point it out as internal hands clean process. Which is really very sad one!

CipherTrace CEO Dave Jevans told Reuters, “We noticed a significant uptick in malicious insiders scamming unsuspecting victims or leaching on their users through Ponzi schemes”

He also added, “Attacks from the inside of organizations lead to significant exits with a major consequence to the crypto-ecosystem.”

Major Reasons

It’s our matter of shame that the governments and the regulator around the world have wrapped themselves with ignorance and opacity about crypto. As a consequence, the market has led to massive losses for investors. 

There were two main drivers for the surge, according to CipherTrace. 

One driver: Plustoken

Users and customers lost roughly $3 billion from an alleged Ponzi scheme involving crypto wallet and exchange PlusToken.

Second driver: QuadrigaCX

The other significant loss was almost $135 million. Customers lost from Canadian crypto exchange QuadrigaCX following the unexpected death of its co-founder, according to CipherTrace.

It does not end here. CipherTrace report also found that billion dollars of crypto money are using in illicit business service. Incorporating the crypto exchanges too. They have transmitted funds on the payment networks to almost all the top 10 US retail banks. 

The analysis further revealed that a typical large US bank processes billions of dollars annually in undetected cryptocurrency-related transfers. 

Time To Awareness

Crypto crime cannot be allowed to grow further. It is high time to take proper initiative to extinguish the crime from the crypto market. For that, the government and regulators around the world should put a strict legal system in this context. They are the only ones who can dominate the greedy in a strict way. Moreover, we also need to be more aware until a law is introduced. Before investing or trading on any exchanges, do lots of research on that particular project. Go through their white papers and team member descriptions more than twice. If anyone gets any skeptical information, confirm once that is a fraud. Soon after, just spread the information on the social networking site for mankind.