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2 October 2022
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CipherTrace Report – $1.4B worth of Crypto Assets Lost to Crimes from Jan to May 2020

Cryptocurrency crimes are continuously rising in the crypto industry even in the COVID-19 pandemic situation as well. A recent report confirms that crypto crimes have been on a rise in the last few months. According to the report released by the famous blockchain analytics and intelligence firm, CipherTrace that tracks crypto crimes, over $1.4 billion worth of digital assets has been lost to fraudsters and hackers in crypto crimes from January to May in the year 2020.

$1.4 Billion lost to crypto crimes in just five months

The report reveals that $1.4 billion has already been lost to crypto crimes so far this year within the duration of just five months and the ratio is expected to rise in the rest of the months as fraudsters and hackers won’t stop from committing illicit activities. According to the CipherTrace crypto intelligence firm, most of the lost funds are associated with Ponzi schemes and investment frauds.

Hacks and thefts have vastly exceeded in the year 2020. However, as compared to the year 2019, this ratio is not high as over $4.5 billion worth of digital assets were lost to crypto crimes in 2019. 

Dave Jevans, the CipherTrace’s Chief Executive Officer (CEO), says:

“Consumers, investors, and users continue to adopt cryptocurrency at a massive rate, and it is by far the fastest-growing payment system on the planet. At one trillion dollars in annual payments, cryptocurrency payments have grown from zero to 7% in 10 years, making this volume of funds attractive to bad actors.”

Exchanges in Russia and Finland Receive the most illicit funds

The CipherTrace report reveals another fact that the cryptocurrency exchanges in Russia and Finland get the highest percentage of funds from hackers and criminals. Especially the Finnish crypto exchanges have been the primary destination for criminals to perform illicit crypto transactions.

According to the CipherTrace report, crypto exchanges in Finland received approximately 12.10% of illicit funds while on the other hand, Russian exchanges received 5.23%.

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