Losses from crimes related to cryptocurrencies reached $ 1.9 billion last year, according to a new report from analytical company CipherTrace.
When it comes to crypto crime, we have 2020 vision. Read all about the year that was in our latest Cryptocurrency Crime and Anti-Money Laundering Report. https://t.co/QNPjNUKEA5 #AML #cryptocrime #cryptocurrency #CBDC #DeFi #rugpull #Satoshi #BTC #XMR #ETH #FutureOfMoney pic.twitter.com/8hXG4g4T3V
– CipherTrace (@ciphertrace) January 28, 2021
In 2020, users lost 57% less assets than a year earlier. In 2019, the figure was $ 4.5 billion.Despite the same number of crimes, the average amount of damage decreased by 160%.
According to the report, the largest loss is associated with the Ponzi pyramids. In 2019, PlusToken’s damage was $ 2.9 billion, or 64% of the annual rate. In 2020, according to a similar scheme, WoToken lured from investors $ 1.1 billion, or 58% of losses for the entire year.
More than half of thefts in 2020 are related to hacking of applications in the decentralized finance (DeFi) sector – $ 129 million A year earlier this figure was almost zero. About 99% of the major scams in the second half of the year were DeFi exit scams.
The KuCoin exchange fell victim to the biggest hack of 2020, worth $ 281 million. Most of the stolen funds (84%) were recovered, which CipherTrace called an unprecedented case.
Last year, U.S. exchanges transferred $ 41.2 million in bitcoin directly to criminals. 84% of cross-exchange transactions in the first cryptocurrency were cross-border transfers. One third of them went to an exchange with a weak identification procedure.
Top Hacks of 2020: DeFi, Exchanges, and DeFi Again
Recall, according to the analytical company Chainalysis, in 2020 the share of transactions related to crime in cryptocurrencies decreased to $ 10 billion.
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