Cryptocurrency fraud reached $1.36 billion in the first five months of 2020

nanoguy

Posts: 495   +7
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A recent study on Bitcoin transactions reveals that 74 percent of exchange-to-exchange trades are taking place across borders, which highlights both the need for better regulation and control, and that crypto theft and fraud is alive and well, not to mention on its way towards a record year.

According to the latest Cryptocurrency Anti-Money Laundering report from security research firm CipherTrace, malicious actors have managed to steal nearly $1.4 billion worth of cryptocurrency assets in hacks and fraud campaigns during the first five months of 2020.

The news comes just weeks after the Bitcoin halving, and it looks like the pandemic has played a major role in creating the right conditions for crypto fraud, which accounts for the majority of stolen digital currency. With governments focused on channeling resources to reduce the socio-economic impact of the pandemic, it's become easier for thieves to fly under the radar.

CipherTrace shows that the main global actor by far is the billion-dollar Ponzi scheme operated by Wotoken in China. The campaign operator has been linked to the PlusToken Ponzi campaign and has stolen about a billion worth of crypto assets from more than 750,000 victims who were drawn by unrealistic promises of high returns based on the automated work of an algorithmic trading software that didn't even exist.

Other notable incidents were related to exit scams like the EOS Ecosystem and insolvencies like FCoin's that amounted to a combined $180 million.

Last year, hackers and scammers stole more than $4.5 billion, but CyperTrace noted that they're getting better at moving money around and avoiding anti-money laundering measures. For instance, thieves are sending 47 percent fewer crypto assets through exchanges, and they also "seem to be getting better at obfuscating the origins of their stolen funds prior to cashing out on exchanges."

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QuantumPhysics

Posts: 2,904   +2,649
Bitcoin - and other cryptocurrencies, are speculative assets with no intrinsic value. They will never work as a "currency" unlike Gold and precious metals because they have no intrinsic value and there's nothing backing or insuring them. The Dollar, Yen, Yuan and others are backed by Gold or military threat.

The Governments: China, USA and Russia will never allow Bitcoin to threaten their own currency and they will either regulate them into the ground or straight up make them illegal like the US government did for US citizens to own Venezuela's petrocoin.

This is about control.

They know crytpocurrency allows these impoverished 3rd world countries to shrug off their racist sanctions. They know crypto allows for easy money laundering. They will tax them into the ground. Despite Bitcoin's recent halving - which I knew would drive activity into Bitcoin, they still can't stay above $10,000 anymore because the early money is selling out of their positions.
 

Uncle Al

Posts: 7,098   +5,455
Well said, in fact I am growing convinced that the only need for this type of currency is in effort to hide activities that could be either illegal or to evade legal taxation or purchases. Neither of which are a good reason for participation.
 

QuantumPhysics

Posts: 2,904   +2,649
Well said, in fact I am growing convinced that the only need for this type of currency is in effort to hide activities that could be either illegal or to evade legal taxation or purchases. Neither of which are a good reason for participation.

I personally believe in the free market. I support 3rd world countries who are attempting to blow off US sanctions.
 

silversea

Posts: 8   +23
The easiest way to stop all this nonsense is to totally eliminate all cryptocurrencies who needs it, nothing but trouble, give people enough time to unload what they now have and do away with the crap, this should never have started. Trouble nothing but trouble has been since the beginning
 

Evernessince

Posts: 5,103   +5,355
Well said, in fact I am growing convinced that the only need for this type of currency is in effort to hide activities that could be either illegal or to evade legal taxation or purchases. Neither of which are a good reason for participation.
The blockchain still has a record of the transaction as do all the services you used to collect said payment (Payment gateway, admin dashboard).

The perception that bitcoin isn't regulated is old and outdated. Try and go to any exchange website in the US, they all require KYC in order to buy bitcoin.
 

NightAntilli

Posts: 355   +270
Bitcoin - and other cryptocurrencies, are speculative assets with no intrinsic value. They will never work as a "currency" unlike Gold and precious metals because they have no intrinsic value and there's nothing backing or insuring them. The Dollar, Yen, Yuan and others are backed by Gold or military threat.
What is backing/insuring the internet?
Have you ever read the Bitcoin whitepaper?
The dollar is no longer tied to gold and has not been for a long LONG LOOOOOOONG time.
If you think "military threat" is a good thing to back up money with, well, I don't know what to tell you.

The Governments: China, USA and Russia will never allow Bitcoin to threaten their own currency and they will either regulate them into the ground or straight up make them illegal like the US government did for US citizens to own Venezuela's petrocoin.
There are privacy coins that make it impossible to track where the money is going. Governments will not be able to stop the crypto revolution, any more than they have been able to stop the internet. Although they are definitely still trying to censor the internet...

This is about control.
And more importantly, this is about freedom, and owning your own money.

They know crytpocurrency allows these impoverished 3rd world countries to shrug off their racist sanctions. They know crypto allows for easy money laundering. They will tax them into the ground. Despite Bitcoin's recent halving - which I knew would drive activity into Bitcoin, they still can't stay above $10,000 anymore because the early money is selling out of their positions.
The dollar is way easier to launder than crypto;
https://www.ccn.com/fiat-money-outpaces-bitcoin-by-8001-for-nefarious-activities-report/

Don't worry about Bitcoin's price. We'll be above 100k in less than 3 years.
 
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QuantumPhysics

Posts: 2,904   +2,649
What is backing/insuring the internet?
Have you ever read the Bitcoin whitepaper?
The dollar is no longer tied to gold and has not been for a long LONG LOOOOOOONG time.
If you think "military threat" is a good thing to back up money with, well, I don't know what to tell you.

There are privacy coins that make it impossible to track where the money is going. Governments will not be able to stop the crypto revolution, any more than they have been able to stop the internet. Although they are definitely still trying to censor the internet...

And more importantly, this is about freedom, and owning your own money.


The dollar is way easier to launder than crypto;
https://www.ccn.com/fiat-money-outpaces-bitcoin-by-8001-for-nefarious-activities-report/

Don't worry about Bitcoin's price. We'll be above 100k in less than 3 years.



#1 Bitcoin has no intrinsic value: Gold and silver by comparison can be used to make computer components, dental work, medical equipment, etc,etc. when the electricity goes out - especially during crisis - Bitcoin doesn't even "exist" - or at least it can't be exchanged without connection to the internet because it has no value. When the power went out here during hurricane Sandy, I could still use my "dollars" to buy food.

#2 Bitcoin is extremely volatile. The huge swings in price are part of the reason many companies don't want to trade in it. It's terrible for small transactions: food, clothing, medical supplies, etc. It's only good for large purchases upwards of hundreds of dollars. Many countries ended large bill denominations just to ensure that transactions in large amounts of money needed to be done with credit cards, bank transfers, etc - to stop money laundering - which Crypto is notorious for.


#3 Many people don't understand the history of "currency". You can't point out a single country that as a country pays the workers in Bitcoin, collects taxes in Bitcoin and uses only Bitcoin as a trading medium. That's because Bitcoin is backed by nothing. Bitcoin's value is directly correlated to how many DOLLARS or Yen, or Yuan or Euros you can get for your bitcoin.

YES - the dollar is backed by something: trillions of dollars of military hardware, nuclear weapons, the police, firemen, teachers, doctors, postal workers, the prison industrial complex, the IRS, etc,etc


#4 WHAT is backing the internet you ask?

First of all, "the internet" is a network of networks. Everything that is plugged in via ethernet, connects over wifi or infra red or any other radio signal is part of the internet. Everything from my computer to your computer, to my phone to your smart TV is part of the internet in a host-client model.

What is backing the internet? Trillions of dollars of electronic hardware.


To be perfectly honest, I used to trade Bitcoin up until Trump's tax bill started to scrutinize it. That's when I knew the show was over. I got in around $300 and got out when I saw it falling from $19,000. Now I only trade stocks. I invest in mutual funds, bank stock, big oil/energy, lithium mining, Gold and biopharma.

Bitcoin is a Ponzi scheme at this point.

Even after the halving, it can't carry its weight beyond $10,000 and will probably NEVER see $19,000 again. The speculators who didn't understand it claimed it "could be" $1 Million by 2019.

Nope.
 
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NightAntilli

Posts: 355   +270
#1 Bitcoin has no intrinsic value: Gold and silver by comparison can be used to make computer components, dental work, medical equipment, etc,etc. when the electricity goes out - especially during crisis - Bitcoin doesn't even "exist" - or at least it can't be exchanged without connection to the internet because it has no value. When the power went out here during hurricane Sandy, I could still use my "dollars" to buy food.

#2 Bitcoin is extremely volatile. The huge swings in price are part of the reason many companies don't want to trade in it. It's terrible for small transactions: food, clothing, medical supplies, etc. It's only good for large purchases upwards of hundreds of dollars. Many countries ended large bill denominations just to ensure that transactions in large amounts of money needed to be done with credit cards, bank transfers, etc - to stop money laundering - which Crypto is notorious for.
New markets are always volatile.

#3 Many people don't understand the history of "currency". You can't point out a single country that as a country pays the workers in Bitcoin, collects taxes in Bitcoin and uses only Bitcoin as a trading medium. That's because Bitcoin is backed by nothing. Bitcoin's value is directly correlated to how many DOLLARS or Yen, or Yuan or Euros you can get for your bitcoin.

YES - the dollar is backed by something: trillions of dollars of military hardware, nuclear weapons, the police, firemen, teachers, doctors, postal workers, the prison industrial complex, the IRS, etc,etc
Ah. You're a statist. That explains everything.

#4 WHAT is backing the internet you ask?

First of all, "the internet" is a network of networks. Everything that is plugged in via ethernet, connects over wifi or infra red or any other radio signal is part of the internet. Everything from my computer to your computer, to my phone to your smart TV is part of the internet in a host-client model.

What is backing the internet? Trillions of dollars of electronic hardware.
The same applies for Bitcoin... So either both bitcoin and internet have no value, or they both do. Take your pick.

To be perfectly honest, I used to trade Bitcoin up until Trump's tax bill started to scrutinize it. That's when I knew the show was over. I got in around $300 and got out when I saw it falling from $19,000. Now I only trade stocks. I invest in mutual funds, bank stock, big oil/energy, lithium mining, Gold and biopharma.
I wonder how you're gonna use those when a hurricane rolls around.

Bitcoin is a Ponzi scheme at this point.
If you truly believe this, you never understood Bitcoin, nor blockchain, nor crypto in general.

Even after the halving, it can't carry its weight beyond $10,000 and will probably NEVER see $19,000 again. The speculators who didn't understand it claimed it "could be" $1 Million by 2019.

Nope.
Ha. Considering how the fed is printing money right now, I would be surprised if we don't see $190k.
 

QuantumPhysics

Posts: 2,904   +2,649

New markets are always volatile.

Ah. You're a statist. That explains everything.

The same applies for Bitcoin... So either both bitcoin and internet have no value, or they both do. Take your pick.

I wonder how you're gonna use those when a hurricane rolls around.


If you truly believe this, you never understood Bitcoin, nor blockchain, nor crypto in general.


Ha. Considering how the fed is printing money right now, I would be surprised if we don't see $190k.


Before I even bothered wasting my time answering this, I checked Bitcoin's price. It's $9,600 and just can't seem to maintain $10,000 or better.

Do me a favor: Wake me at $20,000.
 

NightAntilli

Posts: 355   +270
Before I even bothered wasting my time answering this, I checked Bitcoin's price. It's $9,600 and just can't seem to maintain $10,000 or better.

Do me a favor: Wake me at $20,000.
I'll gladly do that. I do agree that we need to break $10500 (rather than 10k) to confirm the next bull run, and it doesn't seem in the cards right now. But every cycle gets slower as the market matures. The fact that you're still bearish is a good signal in my book. It won't be long before the last capitulation in preparation for the next bull run.