Crypto scams hit $1.7 billion in 2018, 400 percent up from a year earlier

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Crypto scams hit $1.7 billion in 2018, 400 percent up from a year earlier

According to a US based cyber security firm CipherTrace report, revealed on Tuesday, the 29th of January, 2019, Cryptos had run off with over $1.7 billion in 2018 from exchanges and their scale of scammed amount had surged over 400 percent.

As the report mentioned, the stolen $1.7 billion in the form of cryptocurrencies appears be one of the largest criminal activities in the history of digital theft, as over $950 million of sneaked amount constituted from cryptocurrency exchanges, alongside infrastructure related services, such as wallets.

None the less, the malicious purloin of cryptos had been 260 percent up from $266 million of 2017. Japan and Korea, in particular had been the home ground of most of cryptocurrency’s theft, which accounted for 58 percent of stolen money throughout the 2018.

Given the decline of crypto prices throughout the 2018, which entire cap has now been residing below $115 billion, the figures of crypto theft had surprised many analysts. In fact, the total market capitalization of over 1,600 digital currencies were down by 80 percent from a year earlier to $112 billion in January, 2019.

Apart from that, the research had also revealed that the exchange users, brokers and investors had lost over $725 million on cryptocurrency in 2018, while exiting such scams like fraudulent ICOs (Initial coin offerings) mostly performed through the Ethereum, Ponzi schemes, alongside deceiving exchange hacks.