Cryptocurrencies have had the wonderful year of 2018. It is even said that the ending of 2017 and the beginning of 2018 is one of the most successful periods for crypto traders and broker. We cannot argue with the argument that a lot of people made a lot of money with cryptocurrencies, but we would also like to add the fact that a lot of people have also lost money with cryptos. Not only did they lose them during trading, but they lost them through scams as well. Actually, the total amount of cash stolen through cryptocurrency scams in 2018 amounts to $927 million. Almost $1 billion of investor’s money stolen, gone and never to be seen again, probably sitting on some offshore accounts. What’s even more shocking is that all of this happened within the three quarters of 2018, 9 months and $1 billion gone!
What’s even worse is that unregulated crypto exchanges were the majority of the transfers that were made between the scammers, who took advantage of a new booming industry. Scams always find their way in every industry ever. However, everything connected to finances is most of the times the biggest magnet for scammers, as soon as they saw the crypto popularity they jumped on the band-wagon and started scheming. One of the most notorious crypto scams was done by Coincheck, which involved them stealing more than half a billion dollars within just a few months, speaking volumes about either how many people invested, or how much people invested, either way, it was a disaster that a) scared off a lot of people and b) encouraged more scammers. New arrivals didn’t take too long to learn from Coincheck, BitGrail followed suit with nearly $200 million as stolen funds and finally the Bitconnect scam.
What about the past?
Criminal activity in the crypto world has been undocumented for many years. In some cases, the frauds and scams aren’t even punished because the providers of the service just say that they “lost” the cryptocurrencies during a hacker attack or a data leak. Most of the times “losing” such amounts of money make the market fall, allowing the scammers to buy more and more to steal. The only piece of documentation and tracking was done in this report, where nearly every case is taken into account and all of the stolen money is compiled and calculated, amounting to $2.5 billion since 2009.