• Sat, 25 May 2019, 01:39 PM
  • All times are UTC
  • Edition:
    International
Link copied

Cryptocurrency thefts, scams, and fraud could tally over $1.2B in Q1 2019: CipherTrace

Wed, 01 May 2019, 13:46 pm UTC

Criminals stole more than $356 million from cryptocurrency exchanges and infrastructure in the first quarter of 2019, blockchain security firm CipherTrace said in its new report.

The company has published its Q1 2019 Cryptocurrency Anti-Money Laundering Report. It said that the reported amount of $356 million only represents the losses that are “visible,” adding that the true number of crypto asset losses is expected to be much higher.

These losses, CipherTrace said, take into account exit scams including the QuadrigaX incident which robbed cryptocurrency users of nearly $195 million. The report also noted the recent allegations against Bitfinex and Tether of being involved in $850 million fraud.

“Cryptocurrency thefts, scams, and fraud could tally more than $1.2 billion in first quarter 2019,” the report said.

Speaking of exchange thefts, the report mentions the hacking incidents at Cryptopia, DragonEx, and Bithumb. With regards to CoinBene, it said:

“We can only confirm that during the period of the rumored "hack" US$105 million of Ethereum (CoinBene Coin and Maximine Coin are both Ethereum based) moved to other exchanges where it was being converted to various cryptocurrencies, so we are only tentatively classifying it as a possible theft or exit scam.”

CipherTrace also pointed out a major loophole in the existing cryptocurrency regulatory fabric with respect to cross-border payments. Its analysis of 164 million BTC transactions revealed that cross-border payments from US exchanges to offshore exchanges jumped from 45% for the twelve months ending Q1 2017 to 66% for the twelve months ending in Q1 2019.

“Once these payments reach exchanges and wallets in other parts of the globe they fall off the radar of US authorities,” the report said, adding that this highlights a major regulatory blind spot for the U.S.

Further emphasizing on a “tsunami of tough new global anti-money laundering (AML) and counter-terror financing (CTF) regulations” rolling over the crypto landscape in the coming year, the report said that illicit actors would have to think of innovative new ways to launder the stolen cryptocurrencies.

“Although this report punctuates some of the negative occurrences within the crypto ecosystem, it is important to view these illuminations as markers for improvement,” said Dave Jevans, CipherTrace CEO. “This is the wake-up call crypto needs. Cryptocurrency is maturing, and that means having a few growing pains. Once we identify problems, we can find solutions. Crypto currency projects must grow up before they can move forward.”

<Copyright © TokenPost. All Rights Reserved. >

The commenting service is available only after having logged in.
More
  • Bitcoin (BTC) $8,052.09 (+0.67%)
  • Ethereum (ETH) $252.13 (+0.39%)
  • XRP (XRP) $0.387200 (-0.18%)
  • Bitcoin Cash (BCH) $408.16 (-1.38%)
  • Litecoin (LTC) $101.62 (+3.41%)
  • Bitcoin (BTC) $8,052.09 (+0.67%)
May 24, 2019 (Friday)
12:18
Crypto Technicals: ETH/USD retraces above 1H 200-SMA, 'Hammer' on daily charts signals further gains
10:50
German engineering giant Bosch trials Ethereum blockchain
10:39
Crypto Technicals: BTG/USD grinds higher along 21-EMA, breakout at 61.8% Fib (25.74) will accentuate gains
09:33
Bank of Russia to review proposal on gold-backed cryptocurrency
09:17
Blockchain software firm Unstoppable Domains raises $4M from Draper Associates, Boost VC
08:45
Crypto Technicals: LTC/USD bounces off 21-EMA support, next bull target $109
08:45
Robinhood Crypto is now in New York
07:27
Facebook to launch its cryptocurrency 'GlobalCoin' in Q1 2020: Report
07:25
California resident sued for alleged $26M crypto Ponzi scheme
06:33
AT&T teams up with BitPay to become the first telecom to accept cryptocurrency payments
06:16
Rep. Swalwell accepting bitcoin donations in bid for US presidency
06:10
Grayscale receives FINRA approval to open Ethereum Trust to individual investors
05:12
Indian telco Airtel selects IBM for blockchain-based pan India anti-spam call solution: Report
05:07
Binance CEO CZ seeks compensation for reputational damage from Sequoia
04:06
Overstock.com’s blockchain subsidiary signs MOU with Lusaka city to develop land governance platform
03:57
Toyota, University of Tokyo, TRENDE to start testing blockchain-based electricity trading solution
03:14
Russia's NSD to roll out security token blockchain in June
May 23, 2019 (Thursday)
12:15
Crypto Technicals: IOT/USD holds 21-EMA support, retrace till 0.3185 (200-DMA) likely on break below
12:11
Coinstar extends bitcoin buying service to 21 US states
11:38
Crypto Technicals: BTC/USD bounces off session lows with 'Hammer' formation, bias neutral
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft