Report Indicates Crypto Industry Faced $1.2 Billion In Losses Due To Hacks

A recent report has come to light based on research conducted by blockchain analytics firm CipherTrace, which suggests that the crypto industry might have faced losses of a whooping $1.2 billion due to crypto crimes, in the first quarter of the year.

Many notable scams, hacks and frauds plagued the crypto industry in the past few months. Instances of money being lost by QuadrigaCX and Bitfinex are known to all. The report claims that the total amount takes into account the $356 million lost from exchanges (including QuadrigaCX’s $195 million) and over $850 million reportedly lost from the Bitfinex exchange by the New York Attorney General’s office last week.

The firm stated that in its report titled “Q1 2019 Cryptocurrency Anti-Money Laundering Report”, the estimated first quarter loss is almost 71 percent of the $1.7 billion loss seen over the whole of 2018. What is interesting here is that this might not even be the full picture, since “these thefts only represent the losses that are visible,” said the startup.

The report states:

“A tsunami of tough new global anti-money laundering (AML) and counter-terror financing (CTF) regulations will roll over the crypto landscape in the coming year.”

CipherTrace also highlighted that there exists a major discrepancy in the current regulatory environment with respect to cross-border crypto payments. The firm said:

“An analysis of 164 million BTC transactions revealed that cross-border payments from U.S. exchanges to offshore exchanges increased from 45% from the twelve months ending Q1 2017 to 66% in the twelve months ending Q1 2019.”

One major problem that is plaguing the industry is the lack of clear regulations in the cryptocurrency sector, which leaves space for thefts and hacks. Also, with sophisticated technology coming up, hackers are employing new techniques to steal funds from exchanges and investors.