“According to a recent report from CipherTrace, cryptocurrency crimes have resulted in losses of $1.36 billion in the first five months of 2020. This is on track to be the second-costliest year in the history of crypto, behind 2019. The report also noted a major shift away from outright thefts and towards deceptive practices, such as Ponzi schemes involving crypto. One of the biggest scams was the infamous Wotoken, which stole over $1 billion from investors. The report also highlighted the increasing use of privacy coins for illegal purposes. CipherTrace estimates that 22% of transactions in 2020 will use privacy coins, up from 4% in 2019.”
Key Points
Recent findings from CipherTrace reveal that the first five months of 2020 saw losses of $1.36 billion due to cryptocurrency crimes.
If this trend continues, 2020 could be the second most expensive year in crypto history, just behind 2019.
Shift in Crypto Crime Trends
The report indicates a significant transition from direct thefts to more deceptive criminal methods.
These include Ponzi schemes that involve cryptocurrencies.
One of the most notorious scams was the Wotoken scam, which managed to defraud investors of over $1 billion.
The report also underscores the growing use of privacy coins for illicit activities.
According to CipherTrace, it’s anticipated that privacy coins will be used in 22% of transactions in 2020, a significant increase from 4% in 2019.
