Crypto crime will cost the world $ 14 billion in 2021

Crypto crime will cost the world $ 14 billion in 2021

Criminals stole a huge amount of cryptocurrency worth up to VND 14 billion USD in 2021, an all-time high and a 79% increase over the previous year.

However, over the same period, the rate of crypto-related crime fell from 0.62% to 0.15%, according to a report by blockchain research firm Chainalysis on Thursday.

The authors say that the increase in the use of cryptocurrencies for legitimate purposes outpaces the increase in criminal use and the proportion of illegal activity in the bloc, and the volume of cryptocurrency trading has never been so small.

The report says the total volume of crypto transactions is 15.8 trillion. has reached USD in In 2021 an increase of 567% compared to the previous year.

“TO DRAWWith so much adoption, it’s no surprise that more and more cybercriminals are using crypto, but an increase of just 79% could be the biggest surprise of all.“, It says in the report.

However, the authors point out the importance of the number 14 Billion USD caused by criminal activities “poses a major barrier to further adoption, increases the likelihood that governments will impose restrictions and, worst of all, innocent people around the world become victims“.

The authors suggest that the rise of DeFi (decentralized finance) has resulted in more criminals taking advantage of those attracted by the cryptocurrency hype.

The chain analysis is estimated at 7.8 billion USD in total of 14 Billion USD Damage caused by criminal activity comes from scams.

For example, on a scam called “rug pull” (which pulls capital from all investors and runs away), the bad guys have 2.8. stolen Billion USD of victims who have donated funds to seemingly legitimate crypto projects. The report said that every rug pull, except for one major scam involving the centralized Thodex exchange, is linked to a fake DeFi project.

“In almost all of these cases, the developers tricked investors into buying tokens in connection with a DeFi project before appropriating those investors’ capital, causing the value of the tokens to drop to 0 in the process“, It says in the report.

While many third parties check the source code of certain DeFi tokens and people can rely on them when buying and selling, criminals with “the right technical skills” can “create” new DeFi tokens and put them on the exchange without the need to kill go through the source code check. ”This means that investors can fool them into speculating with verified DeFi tokens that turn out to be part of a fraud.