According to Ciphertrace, a cybersecurity company, in the first quarter of this year, bad actors from stealing and operating cryptocurrency frauds from Bitcoin exchanges reached $1.2 billion in the first quarter of this year, as Reuters initially reported. .
Misappropriation of funds or fraud has caused such losses to reach $851 million. On the other hand, fraud and theft losses from encrypted exchanges amounted to $356 million.
Is this year a record year for encryption losses?
Throughout 2018, cryptocurrency theft and fraud caused a loss of $1.7 billion. If the current pace continues, this year will hit a record high.
According to cryptography chief executive Dave Jevans, the weak enforcement of regulations has led to this situation. Jevans also blamed some of the losses on moral and moral deficiencies and mismanagement:
would also like to add that internal problems such as fraud or theft are mainly due to poor management of businesses outside the United States, or simply because of the greed and management of these young management teams that manage hundreds of millions or even billions of cryptocurrency companies. Not good.
This year, one of the biggest losses announced by the cryptocurrency exchange was Canada’s Quadrigacx. About $134 million in user funds were not available because they were locked in a cold wallet set up by the company’s late CEO. Although this is not a common exchange hacking, it is not important to users because they still cannot access their encrypted assets.
Different years, same script
Although the whole incident was very strange, compared with the first quarter of 2018, the four-wheel drive accident still dwarfs. By the end of the first quarter, cryptocurrencies worth more than 5 billion were stolen. This is largely due to the hacking of an exchange – the Japanese coin check.
On January 26, 2018, the exchange was attacked and 560 million NEM tokens worth about $530 million were stolen. This makes coinage theft the biggest burglary in the cryptocurrency industry.
Largest password exchange theft source from Statista
Despite some calls for and efforts to improve their safety, little progress has been made. Since 2016, these crimes have increased year by year. In 2016, $152 million was stolen from the exchange, and in 2017 this figure rose to $266 million. According to Statista, the company’s share price soared to nearly $1 billion in the second year.
Source : Refining Chain Constantly