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   173

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

Chinese Bitcoin Miners Share to Reach 66%

Such superiority of Chinese miners may be due to a large number of farms or more advanced equipment for mining cryptocurrency, expert believes
12 December 2019   86

Miners based in China currently control two-thirds of the total processing power of the bitcoin network. It is reported by Reuters, citing a fresh report by CoinShares.

In June, this value was 60%, reaching the highest level in December over the past two years, during which CoinShares tracks this data. According to the chief researcher of the company Chris Bendiksen, such superiority of Chinese miners may be due to a large number of farms or more advanced equipment for mining cryptocurrency.

This is beneficial to the Chinese mining industry. If you are the first to increase your proportion of the hashrate, and you can do that before your competitors, that’s generally good.

Chris Bendiksen

Head of Research at CoinShares

As the publication recalls, such major mining equipment manufacturers as Bitmain, MicroBT and Canaan are also based in China.

CoinShares representatives also noted that since June, the bitcoin hash rate has increased by 80%, which was partially possible due to the high profitability of this activity and more powerful equipment.

Bitcoin Difficulty Chart
Bitcoin Difficulty Chart

Despite the harsh rhetoric of the Chinese authorities regarding cryptocurrencies, in November, the National Development and Reform Commission (NDRC) did not include mining in the list of “undesirable industries” that are subject to ban.