Cryptocurrency Crime Landscape in 2019
In 2019, the world of cryptocurrency witnessed a staggering level of fraud and theft amounting to a whopping $4.4 billion. This figure surfaced from the third quarter’s report by CipherTrace, a security research firm that keeps its finger firmly on the pulse of crypto crime. It’s like a really expensive soap opera but with less drama and more digital wallets.
Crime Volume Takes a Dip
Well, here’s the twist! Despite earlier predictions, Q3 of 2019 actually saw a significant decrease in the volume of crypto-related crimes compared to previous periods. Amidst this decline, only $6.5 million was snatched from exchanges, while exit scams and Ponzi schemes accounted for $9 million.
This charming mix-up left criminals with a grand total of $15.5 million—the smallest crime wave in the crypto realm of the past few years. Talk about a dramatic turn of events!
The Big Heists: 2019’s Notable Scams
Let’s not sugarcoat things, though. The year also saw some massive heists where schemers sharpened their numbers, leading to phenomenal losses. The PlusToken scheme took the crown, netting around $2.9 billion, while the QuadrigaCX exchange saga followed closely behind with a loss of $195 million. Apparently, thieves have a tendency to go big or go home!
Weak KYC Standards: An Open Invitation?
Out of 120 crypto exchanges examined by CipherTrace, it was revealed that approximately 35% upheld strong KYC (Know Your Customer) standards, while a baffling 24% operated under weak regulations. It’s almost as if they were handing out candy to players at a poorly monitored carnival. Spoiler: This is not ideal when dealing with all that digital cash.
Recent Cyber Heists – The Dirty Deeds
As the year rolled on, cybercriminals took to more sophisticated tactics to mask their activities. An alarming revelation came on November 26 from Slovakian software security company Eset, highlighting that gangsters behind the Stantinko botnet were spreading a Monero (XMR) mining malware via YouTube. Imagine, a secret club where membership requires a malware infection—welcome to 2019!
A Glimpse into the Future: What Lies Ahead?
The world of cryptocurrency is unpredictable, and with high-profile cases like the Upbit theft of 342,000 Ether and ongoing legal battles involving exchanges like Bittrex, it’s clear that changes are necessary. As crypto enthusiasts, we must remain vigilant and ensure that these digital currencies maintain a semblance of trust and security. Otherwise, the ride could get bumpy!
