Crypto Crime Cost Sector At Least $1.2B In Q1

| Publish date: 05/02/2019
Share

The crypto space has witness massive losses lately. Unfortunately, all losses arising from crypto hacks and frauds have taken their toll, especially since they have reportedly reached a whopping high of $1.2 billion in the first quarter of the year. Here is everything about it in a nutshell.

Massive Losses in the Crypto Space

According to the official report, the data was courtesy of a new research from CipherTrace. The latter is basically a blockchain analytics firm, with a goal to understand/or provide data centered on the space.

The company stated that the aforementioned figure already includes more than $356 million lost from crypto exchanges, one of which includes the infamous $195 million lost from QuadrigaCX. Even more so, it covers the $850 million that is believed to have been lost from the Bitfinex exchange. This, in particular, is according to allegations courtesy of the NYAG or New York Attorney General.

Apparently, though, Bitfinex has been steadfast in suggesting that these allegations from the NYAG are inaccurate. It even went to say that these funds have been frozen by a good number of authorities at a payments firm. However, the company promised that it has been doing everything it can to retrieve these funds.

CipherTrace claimed that in its report, which is called “Q1 2019 Cryptocurrency Anti-Money Laundering Report,” the loss in the first quarter is already around 71 percent. The percentage is part of the $1.7 billion loss witnessed by the crypto space over the course of 2018.

The startup said that these thefts, in one way or another, only refer to losses that are deemed visible. In other words, the real number of digital currencies lost is likely to be higher than what the report indicated.

Lack of Crypto Regulations

There has been many reasons suggest as to why these crypto losses took place. However, CipherTrace believes that the lack of satisfactory and straightforward regulations is the main reason behind this narrative.

Changelly - Exchange cryptocurrency at the best rate

The report from the startup further said that a so-called a deluge of tougher new counter-terror financing (CTF) and global anti-money laundering (AML) regulations are expected to arrive in the crypto space. Although nothing has been set in stone yet, they are believed to roll over anytime this year.

It turns out that cyber criminals have been successful in adopting newer techniques, allowing losses in the crypto space to be inevitable. Some of these include insider misappropriations and kidnapping.

Share

Related Posts

BTC Backed Stablecoin Launched
A new stablecoin has been launched on the Ethereum…
AdvisorShares Sabretooth ETF Being Launched
Two American companies have joined hands to launch a…
PayPal Just Invested In A Blockchain Startup
PayPal, which is an online payments giant, has made…

Leave a Comment