Wednesday, 17 February 2021 22:37

Cryptocurrency criminals stole US$1.9b in 2020, down from US$4.5b in 2019

By
Click to enlarge Click to enlarge

With Bitcoin reaching US$50,000 this week, the entire cryptocurrency market has seen impressive growth last year and especially in the last six weeks of 2021 with many investors turning to digital coins as a store of value amid the COVID-19 crisis, but 2020 saw less criminal cryptocurrency theft than in 2019.

Finaria.it has published a new report on cryptocurrency theft, noting that "more money flowing through digital exchanges created an opportunity for malicious hackers and thieves looking to carry out frauds, scams and theft".

However, according to data presented by Finaria, "cryptocurrency criminals stole US$1.9bn in 2020, down from US$4.5bn in 2019."

Fraud was the Leading Cryptocurrency  Crime in 2020, Followed by Theft and Ransomware

We're told that "the surge in cryptocurrency trading fuelled the dynamic growth of the cybercrime world. In 2018, cryptocurrency crimes hit $1.7bn value, revealed CipherTrace's annual Crypto Anti-Money Laundering and Crime Report. This figure soared by almost 165% year-over-year to $4.5bn in 2019."

"Although 2020 witnessed an impressive growth of the entire cryptocurrency market, related crime was down 57% from 2019, dropping to US$1.9 billion. Also, the average value taken by criminal actors was 160% higher in 2019 than in 2020, despite the similar number of cryptocurrency frauds, showing the maturity in the crypto space and strong precaution measures against threats.

"Statistics show fraud was the leading cryptocurrency crime last year, followed by theft and ransomware. Although the total value of cryptocurrency crime dropped in 2020, cryptocurrency theft jumped by 40% YoY and hit US$513 million, still far below the record of US$950 million from 2018.

"The survey revealed that decentralised finance (DeFi)- related hacks and scams added US$129 million to the combined value of cryptocurrency thefts in 2020, turning it into the next major threat vector for fraud and money laundering. Other thefts caused US$387 million worth of damage."

Chinese Ponzi Scheme Wotoken Stole Over $1B Worth of Crypto, the Biggest Fraud in 2020

"The last year's running total largely come from a single fraud, Wotoken, which functioned from July 2018 to October 2019, but was revealed in 2020. It worked as a classic multi-level-marketing project, but with a suspiciously high number of total hierarchical levels.

"The scam promised investors unrealistic returns using non-existent algorithmic trading software. Ultimately, one Wotoken operator, connected to the infamous PlusToken Ponzi scheme, stole nearly US$1.1 billion in cryptocurrency from more than 715,000 victims. China sentenced operators of the cryptocurrency Ponzi scheme to years in prison."

More infromation is available at the Finaria website here.


Subscribe to ITWIRE UPDATE Newsletter here

GRAND OPENING OF THE ITWIRE SHOP

The much awaited iTWire Shop is now open to our readers.

Visit the iTWire Shop, a leading destination for stylish accessories, gear & gadgets, lifestyle products and everyday portable office essentials, drones, zoom lenses for smartphones, software and online training.

PLUS Big Brands include: Apple, Lenovo, LG, Samsung, Sennheiser and many more.

Products available for any country.

We hope you enjoy and find value in the much anticipated iTWire Shop.

ENTER THE SHOP NOW!

INTRODUCING ITWIRE TV

iTWire TV offers a unique value to the Tech Sector by providing a range of video interviews, news, views and reviews, and also provides the opportunity for vendors to promote your company and your marketing messages.

We work with you to develop the message and conduct the interview or product review in a safe and collaborative way. Unlike other Tech YouTube channels, we create a story around your message and post that on the homepage of ITWire, linking to your message.

In addition, your interview post message can be displayed in up to 7 different post displays on our the iTWire.com site to drive traffic and readers to your video content and downloads. This can be a significant Lead Generation opportunity for your business.

We also provide 3 videos in one recording/sitting if you require so that you have a series of videos to promote to your customers. Your sales team can add your emails to sales collateral and to the footer of their sales and marketing emails.

See the latest in Tech News, Views, Interviews, Reviews, Product Promos and Events. Plus funny videos from our readers and customers.

SEE WHAT'S ON ITWIRE TV NOW!

BACK TO HOME PAGE
Alex Zaharov-Reutt

Alex Zaharov-Reutt is iTWire's Technology Editor is one of Australia’s best-known technology journalists and consumer tech experts, Alex has appeared in his capacity as technology expert on all of Australia’s free-to-air and pay TV networks on all the major news and current affairs programs, on commercial and public radio, and technology, lifestyle and reality TV shows. Visit Alex at Twitter here.

Share News tips for the iTWire Journalists? Your tip will be anonymous

WEBINARS ONLINE & ON-DEMAND

GUEST ARTICLES

VENDOR NEWS

Guest Opinion

Guest Reviews

Guest Research

Guest Research & Case Studies

Channel News

Comments