Ciphertrace Reveals Crypto Crimes Moves Up 160% to $4.5b in 2019

While the all out misfortune from crypto-related hacking assaults dropped a year ago, the all out misfortunes from cryptographic money wrongdoing hopped to $4.52 billion, from $1.74 billion recorded in 2018. These discoveries were partaken in a report done by blockchain legal sciences firm CipherTrace.


In its most recent cryptographic money hostile to tax evasion report for Q4 2019, CipherTrace introduced the features for the entire year. The creators said that the aggregate sum of crypto-related robberies and cheats flooded by practically 160% to a faltering $4.5 billion. This incorporates $370.7 million lost in return burglaries and hacks and $4.1 billion of misfortunes from misrepresentation and misappropriation of assets.

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. Attacks from the inside of organizations lead to significant exits with major consequence to the crypto-ecosystem.”

CipherTrace’s findings that losses from crypto exchange thefts and hacks declined last year by 66% coincides with the conclusions of a separate report released in January by Chainalysis. The latter said that the total value stolen from crypto exchanges declined to about $283 million last year, though the number of exchange hacks surged to a record 11 attacks.10 BTC & 20,000 Free Spins for every player in mBitcasino’s Winter Cryptoland Adventure!

Thus, the greatest part of crypto crime losses was due to misappropriation and fraud, which rose by five times, CipherTrace said.


The report said that two large losses in the first quarter of 2019 were the main cause behind the surge in total losses.

Retail and institutional crypto investors in Asia lost about $3 billion from PlusToken, a Ponzi scheme that acted as a cryptocurrency wallet and exchange service.

Elsewhere, customers of Canada-based crypto exchange QuadrigaCX lost $135 million after its co-founder, who supposedly held the private keys of client’s crypt funds, unexpectedly died.

Interestingly, CipherTrace found that 97% of ransomware uses Bitcoin as the payment rail, which is not surprising, given that BTC is still the most dominant digital currency.

Another finding is that illicit crypto service providers, including some crypto exchanges, have transferred funds on the payment networks of the majority of top ten American retail banks.

Leave a Reply

Your email address will not be published. Required fields are marked *