A newly released report suggests that in 2019 financial damage related to crypto thefts and fraud may rise above USD 4.3 billion.
CipherTrace, a crypto security company founded in 2015, stated the because of criminal activity crypto coins worth over USD 1.2 billion were stolen in Q1. Exchanges had USD 356 million stolen and, at the same time, in exit scams almost USD 200 million were ripped off from cryptocurrency users.
The office of the NY Attorney General also stated that a scam involving Bitfinex had resulted in losses of around USD 850 million. Cyber attacks are becoming more sophisticated by the day as criminals create new ways to take money from individual crypto users or crypto trading platforms.
However, these are only the numbers that we know and there are certainly many more thefts than that. The real number of stolen crypto coins is much higher.
Hackers are not setting new account passwords and using a phone’s SIM card to steal crypto coins. Studies that were done recently indicate that there are also many issues with cryptocurrency regulations in most countries.
For instance, international crypto transactions from the United States to offshore trading platforms are increasing yearly. This is a major problem since over 11 percent of wealth is hidden there.