Analysis Firm Says Crypto Theft Will Rise By 75% This Year

Cryptocurrency News Scams

Last year went into the record books regarding the mammoth amount of funds and assets that were stolen via scams and hacks. But while that was a figure that is so disheartening, regulators would be contented with the fact that they were able to bring the amount stolen down, compared to the one of 2019. With the celebrations of having hackers under wraps still in the market, a new report has surfaced, bringing in bad news. According to the new report, the amount of crimes in the crypto market is set to skyrocket by about 75% this year. To prevent several frauds and hacks in the crypto sector, the top company, Bolster, made inquiries and came up with this report.

Bolster notes a 40% rise in crime last year

In the report prepared by Bolster, the authors considered many factors, including the relationship that the high rate of crime has with the massive growth that the crypto market has seen. In the recent report, the firm pointed out that last year saw a 40% rise in the number of times a crime was committed in the crypto market compared to 2019. To note this, nothing less than 400,000 hacks were officially reported.

But despite the coronavirus pandemic still very much around and businesses still booting up from the extended closure last year, the report has pointed out that the market’s crime rate will rise. In the words of the CTO of the firm, out of all the growing types of crimes across the financial market, the crypto market saw one of the biggest crime increases. He also points that with the way the market is growing in leaps and bounds, theft is sure to rise in the same way. Since the hackers know that most people are gullible due to the crypto market being a developing market, they tend to take advantage of most people.

Chainalysis complements Bolster report

Backing up the report that Bolster prepared, Chainalysis has also mentioned the same fact. According to the analysis firm, the crypto market has officially seen funds above $2 billion move over to hackers and malicious actors. The firm also said that, like expected, Bitcoin still leads in the number of assets stolen in the market. It is easily understandable because Bitcoin has seen enough rise in the past few years to cement its place at the top of the financial market, dragging other assets along.

With the demand for the asset still climbing in folds, it is also safe to note that it is presently contributing 80% to the total crypto market cap. Evermore popular, institutional investors have been able to add their effects to the market, with most of them buying the asset in bulk at different times. Asides from crypto, we have seen the emergence of fist backed digital currencies. Even though most countries are still researching, countries like China are far ahead in their plan to launch.

Leave a Reply

Your email address will not be published.