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Crypto Crime Still Rampant in 2019 with Fraudsters Stealing $1.2 Bln: CipherTrace Report

Wed, 05/01/2019 - 15:49
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Alex Dovbnya
⛄☀️Whether it’s crypto winter or crypto summer, criminals continue to plague the burgeoning industry
Crypto Crime Still Rampant in 2019 with Fraudsters Stealing $1.2 Bln: CipherTrace Report
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According to a report that was recently released by crypto intelligence firm CipherTrace, crypto crime might have cost the industry a startling $1.2 bln. Despite the persistence of regulators to curb crypto-related frauds and scams, they seemingly continue to thrive.

Crypto Scams in Australia Surge 190%, Still Nowhere Near Fiat Losses in Frauds

A dead CEO, kidnappers, and Kim Jong-un  

The report mentions the biggest crime stories of the year (so far) that took the cryptocurrency industry by storm. That includes the QuadrigaCX imbroglio – the embattled digital asset exchange lost $195 mln after the unexpected death of its CEO that was put into question by many prominent crypto influencers. Overall, $356 mln was stolen from exchanges during the first quarter.  

While not included in the total amount of stolen crypto, North Korea’s $571 mln loot also wasn’t left unnoticed. As reported by U.Today, the authoritarian state targets cryptocurrency exchanges in other Asian countries in order to avoid sanctions. Another huge story was the kidnapping of the wife of Norwegian billionaire Tom Hagen (kidnappers demanded a €9 mln ransom in Monero).    

Bitcoin Accounts for 95 Percent of Crypto-Related Criminal Cases: Chainalysis

‘A tsunami of regulations’

CipherTrace highlights the efforts of regulators to battle criminal activities. For instance, a French regulator proposed a ban on anonymous cryptocurrencies back in March. While Bitcoin is only ‘pseudo-anonymous’, there are plenty of privacy coins in the likes of Zcash and Monero that allow its users to perform untraceable transactions.

The report further states the community should expect ‘a tsunami of regulations’ in the cryptocurrency space this year.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at