Crypto Crime Is On The Rise, Here’s What You Need To Know

2020 stands as one of the worst years in the crypto industry due to already recorded and potentially increasing crime records.

A report released by digital-asset intelligence firm CipherTrace shows that the value of funds stolen through crypto-related crimes over the first five months in 2020, stood at $1.4 billion.

How Crypto-Criminals are taking advantage?

Resulting from the ongoing pandemic, unsuspected victims are rendered patsy via ransomware darknet marketplace fraud, and phishing campaigns which are some methods adopted by crypto criminals.

Scammers have seized this opportunity by devising novel ploys — promising high returns on various crypto-related offerings such as binary options, trust trading, etc. — to lure in unsuspecting individuals.

Officials at CipherTrace stated that the largest contributor to crypto crime in 2020 has been Wotoken’s alleged billion-dollar Ponzi scheme that emerged from China, laying claims that of the $1.36 billion in crypto stolen so far this year, 98% of the total value — nearly $1.3 billion — can be attributed to fraud and misappropriation rather than to hacks and direct thefts.

The total value of stolen cryptocurrency could reach $4.5 billion if things continue at the same rate.

How Can This Be Curbed?

Officials at CipherTrace believe that any of, or a combination of these three options will help reduce cryptocurrency crimes:

  • A balanced ecosystem is required, in which Anti-Money Laundering procedures can be democratized and users are given a voice.
  • AML technological platform that enables institutions to verify the risk of blockchain transaction counterparties and meet their regulatory obligations.
  • A platform with the capability to facilitate end-to-end investigations in cases where funds are reported missing as well as incentivize the reporting of suspicious activities.

Read more of CipherTrace’s findings here

Read also: Conditions To Be Met Before Schools Can Be Re-opened.

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