CipherTrace, a leading cryptocurrency intelligence firm, recently released the Q2 2019 Cryptocurrency Anti-Money Laundering (AML) Report. Cryptocurrency Criminals Hacked $4.3 Billion in 2019.
The Q2 quarterly report analyzes crime related to cryptocurrency and gives an extensive summary of current and pending regulatory legislation and developing trends.
The CipherTrace report also covers Facebook’s Libra project, and its possible implications for global finance.
According to CipherTrace, cryptocurrency criminals made an estimated $4.3 billion to date in 2019. Hacking thefts amounted to $125 million, adding $227 million in total in 2019. This includes the $195 million QuadrigaCX hacking, where hackers stole $161 million in Q1.
“Outright thefts, as well as scams and other misappropriation of funds from cryptocurrency users and exchanges, continued apace, netting criminals and fraudsters approximately $4.3 billion in aggregate for 2019,” the report states.
CipherTrace reported that investors lost approximately $2.9 billion to a South Korean exchange and pyramid scheme Plus Token when they went offline. This was supposedly the biggest single loss of 2019.
With 3.1 billion dollars stolen from exits and another 874 million dollars in misappropriated money, CipherTrace adds that 2019 may be the “Year of Exit Scam.”
The firm reported that hackers used sophisticated cyberattacks to steal $44 million from Binance, the world’s biggest cryptocurrency exchange.
The CipherTrace study reveals that, despite the introduction of privacy coins, Bitcoin still dominates payment methods in dark markets.
CipherTrace states that, following the latest travel rule of the Financial Action Task Force (FATF), illicit funds will quickly be subject to more intense scrutiny. The rules require personal information for transfers over $1,000 for both the sender and receiver of funds.