Theft of Cryptocurrencies from Exchanges could Grow to $1.5B

Cybercriminals steal cryptos from exchanges - CoinShot

In the first half of this year, the theft of cryptocurrencies from exchanges grew 3-fold due to security problems.

A report on the global anti-money laundering market showed that in the first six months of the year, a total of $761 million was stolen on the digital currency exchanges, compared with about $266 million for the entire 2017.

Loss this year could grow to $1.5 billion, CipherTrace evaluated, which launches software that helps exchange and hedge funds that use or trade cryptocurrency, comply with anti-money laundering laws.

As Dave Jevans, CEO of CipherTrace, said in an interview with Reuters:

“Stolen cryptocurrencies are three times this year.”

Jevans is also the chairman of the Anti-Phishing Working Group, a global organization whose goal is to help resolve cybercrime.

He added that stolen virtual currencies eventually erase to help criminals hide their true identity and avoid arrest, which led to a three-fold increase in money laundering by cryptocurrencies.

The most recent theft from the exchange of cryptocurrencies is $32 million in digital currencies stolen from South Korean exchange Bithumb.

According to Jevans, the surge in crypto-criminality has attracted the attention of global regulators and law enforcement agencies.

For instance, the report also cited concerns about rising criminal activity in the sector from the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN), which referred to cryptocurrency-denominated ransomware payments and research showing that $1.5 billion was stolen in hacks of exchanges over a two-year period.

Jevans said that regulators around the world, global law enforcement agencies and exchanges are in constant dialogue about what should happen in the cryptocurrency industry to prevent the growth of crime.

“Now we are seeing the big guys coming together asking for cryptocurrency anti-money laundering regulation it’s inevitable, it will be unified, and it will be global”.