Crypto-Related Theft & Scam to Reach $4.4B in 2019

Compared with 2018, cryptocurrency losses due to scam and other crime activities rose sharply - $ 4.4 billion against $ 1.7
28 November 2019   174

Cryptocurrency fraud and theft in 2019 reached $ 4.4 billion. This was reported in the report of the analytical firm CipherTrace for the third quarter.

The company's specialists noted a marked decrease in the total number of crimes related to cryptocurrencies. In the third quarter, hackers stole $ 6.5 million worth of cryptocurrencies from bitcoin exchanges, while fraudsters cost users of digital assets another $ 8 million.

This total of $15.5 million represents the smallest number of cryptocurrency crimes of any quarter in the past several years. Certainly, if the lower altitude of this trend line persists it should provide a confidence boost for users and investors in an industry rocked by one exchange heist, scam or Ponzi scheme after another.
 

CypherTrace Report

Nevertheless, compared with 2018, losses rose sharply - $ 4.4 billion against $ 1.7.

Two frauds were the most significant this year: the PlusToken cryptocurrency pyramid ($ 2.9 billion) and the collapse of the Canadian QuadrigaCX exchange ($ 195 million).

CipherTrace researchers also analyzed the KYC 120 standards of the most popular cryptocurrency exchanges. In 65% of the sites, they were rated as vulnerable and weak

SEC to Accuse Shopin in $42M Worth ICO Scam

The Commission believes the actions of Shopic during the ICO was the offering or unregistered securities
12 December 2019   93

The U.S. Securities and Exchange Commission (SEC) has accused Shopin and its CEO Eran Eyal of cryptocurrency cheating on investors during the initial offer of $ 42 million tokens.

According to the SEC, the actions of Eyal and his company were an unregistered offer of securities in the form of Shopin tokens.

Eyal told investors that the funds raised would be used to create a blockchain platform for storing and tracking profiles of online store customers. In addition, he lied about existing partnerships with retailers, the agency said.

The problem is that Shopin never created a system, says the regulator.

Instead, Eyal appropriated more than $ 500,000 for personal use, including a dating service.

SEC accused Eyal and Shopin of violating securities laws. The regulator requested the court to oblige the accused to return the illegally appropriated funds with interest and payment of fines. In addition, the SEC has proposed banning Eyalu from acting as an official in any offer of securities or tokens.

In a statement, the SEC also recalled that the prosecutor’s office in 2018 accused Eyal of appropriating $ 600 thousand of investor funds to his previous company Springleap.