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   297

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

Bakkt to Release Consumer App This Year

The app can be used for a wide range of tasks, e.g., crypto and securities trading, virtual goods purchase, etc
23 January 2020   102

Institutional Investor Platform Bakkt will release an app for retail investors this year, with which users can pay with cryptocurrency.

According to the president of Bakkt Adam White at the World Economic Forum in Davos, the application can be used for a wide range of tasks. In addition to trading cryptocurrencies, it will support various virtual “goods” like points of loyalty programs.

In addition, in the future it is possible to add securities trading, as well as the creation of a portal for shops and merchants. That is, the application will be more like a traditional fintech product like PayPal than a solution from a cryptocurrency exchange.

Although the Bakkt platform was originally created for institutional investors, the new director of Mike Blandina is very serious about entering the retail market. Earlier, he said that the application for retail investors should be released in the first half of 2020.

I do not think we are there yet. What gives me optimism is that we are seeing a lot of developer interest. I am confident that someone is going to find something.


Adam White

President of Bakkt

 White added that the cryptocurrency market is still underdeveloped.