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CipherTrace estimates the damage from cryptocurrency scams and hacks in 2020 at $ 1.9 billion

Losses from crimes related to cryptocurrencies reached $ 1.9 billion last year, according to a new report from analytical company CipherTrace.

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%.

Data: CipherTrace.

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.

Data: CipherTrace.

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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Fidenge Pecold

My profession is a journalist, but my hobby for 8 years has been studying Forex investing and trading. During this time, I managed to gain extensive experience in investing and trading cryptocurrencies and double my capital in the Forex market. To be the author of this magazine, the site owners invited me to participate in one of the 2020 trading webinars, and I will try to reveal the most relevant crypto market news for you.

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