Yesterday, a rather shocking cryptocurrency anti-money laundering report?was already released by the crypto analytics company CipherTrace. This report states that around $1.7 billion property value of cryptocurrency was obtained illegally in 2019 . What’s more surprising is always that crypto hacks happened three times more than in 2019. Perfectly logical institutional investors don’t like to put lots of money into the crypto industry yet.
Crypto Hacks Worth $1.7 Billion
Of the whole stolen in 2019 , over $950 million was from cryptocurrency exchanges. This really 3.6 times around what was stolen from exchanges in 2019. The residual funds ($725 million) with the crypto hacks happened from things like Ponzi schemes, exit schemes, and fraudulent ICOs.
These schemes may possibly be higher in volume on account of the overwhelming price that flooded the cryptocurrency market in 2019. By December 2019, the sum of cryptocurrency market was worth approximately $550 billion-hitting over $800 billion within the second week of January.
This level of investment flooding within the system likely intrigued hackers and saw cryptocurrency exchanges as fast targets. ICOs were also huge money makers in 2019, and start-up companies were receiving millions in funding with regard to an idea. As well as pump and dumps, hackers built their unique fraudulent ICOs again funding was completed, shut down the entire website and ran.
Now, seems like investors are treading lightly while in the cryptocurrency space and rightfully so. According to CipherTrace’s?report, almost all crypto hacks took place Q1 and Q2 of 2019 . Market trends was worth a lot less in Q3 and Q4 of 2019 -making it not so appealing for hackers. In the course of writing, the overall cryptocurrency market is worth around $115 billion.
It remains unknown at the moment what will should be in place to help make institutional investors comfortable using digital currencies. Right at this moment, they can commit to Bitcoin Futures and ETFs-if they ever become available.