Crypto Money Scams Stole $ 381M in 2020


Cryptocurrency fraud has stolen a total of $ 381 million from its victims this year. This figure makes crypto money frauds the biggest category of cryptocurrency related crimes so far in 2020.

Chainalysis data still shows that the current figures are far below those seen in 2019. In 2019, fraud accounted for 74 percent of crypto-related crimes. The current decline in crypto money fraud is attributed to the lack of a big scam like the Plustoken Ponzi scheme.

Most importantly, the data of Chainaylsis also show that the share of cryptocurrency-related crimes in total cryptocurrency activity is well below 1 percent. Still, the blockchain analytics firm warns that the current figures are only so small for now. With the advent of frauds that have not been previously reported, the final figure may grow.

Not new

Meanwhile, in his comments on Twitter hacking on July 15, Chainalysis says, “The scam carried out by hackers is not new either.” It has been going on for years to impersonate an important person or company and insist users send cryptocurrencies.

Pointing to data compiled by Cryptoscamdb, an open source database, Chainalysis shows that this type of fraud accounts for about 71 percent of all cryptocurrency frauds reported since June 2018.

The analytics firm has identified three main addresses used by fraudsters, but states that “most of the stolen funds (later) are consolidated at the Bitcoin wallet address”.

In the same blog post, Chainalysis also reveals the importance of blockchain analysis. Visibility to the fund movement provided by cryptocurrencies like Bitcoin makes them a safer, more transparent asset than cash and other traditional forms of value transfer.

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