The report by Crystal confirmed that fraudulent and breaching activity was growing with the increase of cryptocurrency popularity. $7.69 billion were lost during the trade operations since 2011. Login Casino follows the latest cryptocurrency news and informs the readers about the most interesting aspects of the report, related to scam tendencies and aims of swindlers.
The growth of blockchain technology led to the rapid development of crypto assets, promising that transactions and other operations would be safe. However, fraudulent technologies are growing in parallel with useful breakthrough ideas. It means that the blockchain approach gives not only anonymity to the financial transactions but also to the thefts with inevitable consequences.
The crypto analytics firm Crystal has presented a report that shows swindlers' activity since 2011 and its division by involved countries. The document confirms that the blockchain thieves' primary aims are the most developed countries with a significant amount of crypto trade. The leaders can be easily forecasted: the US, UK, China, Japan, and South Korea.
Interestingly, the biggest single theft took place in Japan, where the breach led to losing 535 million dollars. In terms of most fraudulent cases, the US takes a leading position, with an overall 13 adverse cases. However, the most significant total amount was stolen in China, where the only Wotoken case in May 2020 led to the scam of more than a billion dollars.
Are there any fraud trends related to the cryptocurrencies?
In terms of particular currencies, the most frequent were Bitcoin tokens and Ethereum. It is logical as both currencies are holding the dominant positions in the overall crypto balance, with $295 and $52 trillions accordingly. If to take into account the crypto assets that have $100+ million total worth, Bitcoin has 66% of the market, while Ethereum contains 11.6%.
What relates to the amount of the average scam, it has been also growing with years. Thus, the first few years after 2011 were comparatively gentle as the average amount of the fraud or breach was about a million dollars. However, with years it achieved tens of millions of dollars per scam case, with an astonishing number of $134M in 2019. The year 2020 lags behind with $80M per case, which is only slightly higher than $65M in 2018. Throughout the years, the report states about 113 security breaches and 23 fraudulent cases, making the average number of the scam at the level of $56.5M.