Wednesday, June 16, 2021

Digital currency theft losses reached $1.2 billion in FQY19

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Zubair Yaqoob
The author has diversified experience in investigative journalism. He is Chief content editor at wnobserver.com
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CipherTrace revealed that losses from the theft of coded currencies from exchanges and other fraud-related activities rose in the first quarter of 2019 to $ 1.2 billion, a 70 percent increase over 2018.

Value of digital currency losses in 2018 was about 1.7 billion dollars, but the crimes of encoded currencies have been inflated as the market slows, prices fall and business stops.

In the first quarter of 2019, the total theft of digital currency from stock exchanges and deception was about 356 million dollars, while the losses from fraud or misappropriated funds amounted to 851 million dollars, according to CipherTrace in its quarterly report.

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CipherTrace said its report included losses on the Canadian Quadriga CX digital platform, where approximately 180 million Canadian dollars ($ 134 million) of encrypted currency was frozen in user accounts after the death of the founder in December- the only person with the password.

“Encryption crimes have worsened because the regulations are still weakly enforced, Europe has not yet implemented its regulations widely and the cyber criminal community continues to grow,” Jefans, chief executive of encryption, told Reuters.

“I would also like to add that internal problems such as fraud or theft have often grown because of operations outside the United States where regulations are poor, or simply because of greed and mismanagement by young management teams in encrypted currency companies that manage hundreds of millions or even billions of dollars “Jefans said.

The CipherTrace report also noted that there is a large gap in the regulatory environment of the current coded currencies with respect to cross-border payments from US stock exchanges to foreign exchanges, which exceed the limits of the US authorities.

Analysis of 164 million KFH transactions showed that cross-border payments to foreign exchanges have grown 46 percent over the past two years, contributing $ 8.7 trillion, or 11.5 percent of the world’s wealth abroad.

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