CipherTrace, an analytic blockchain company, reported that the total amount of cryptocurrency fraud in 2019 could be $4.3 billion. The document called "Q1 2019 Cryptocurrency Anti-Money Laundering Report” was published on the company's website.
As indicated that the collective efforts of crypto-wallets and exchanges to strengthen security measures were not enough to prevent hackers from stealing more than $125 million in the second quarter. This amount can be up to $400 million, given the rapid growth of the cryptocurrency market during the specified period.
Binance, the number one cryptocurrency exchange in terms of trading volume, was the victim of a $40 million security breach in May. Thus, even such giants of the crypto industry cannot cope with new technologies and tools used by cybercriminals.
However, CipherTrace predicts that the main threat of 2019 will be fraudulent companies rather than hackers. For reference, the Canadian crypto exchange QuadrigaCX, which went bankrupt after the death of its head and founder, established this trend at the very beginning of the year. After the sudden death of the CEO of the exchange, more than $200 million were lost.
The growing number of fraudsters in the crypto space naturally entailed closer monitoring of the global regulators.
Now the FATF Anti-Money Laundering Development Group (FATF) is proposing a new rule according to which transactions between cryptocurrency exchanges should include personal information about the sender and receiver of funds, as is the case in international bank transfers and in SWIFT.