• This quarter saw the reduction of losses to scams and hacks.
  • Only one-third of the top exchanges have strong KYC procedures.

Hackers and cyber thieves ran away with over $4.4 worth of cryptocurrency since the beginning go the year, according to the 3Q report on cryptocurrency-related crimes, published by CipherTrace.

The experts of the research company found out that hackers stole digital assets to the tune of $6.5 million from cryptocurrency exchanges. Another $8 million were lost to various cryptocurrency scammers and fraudsters. While this is the lowest quarterly figure in the recent two years, the year-to-date losses are significantly higher from what was registered in 2018 ($4.4 billion against $1.7 billion in 2018).

The experts also pointed out to the reduction of outright thefts and the growing share of exit scams and insider-trading frauds. This trend may signal that cryptocurrency exchanges have improved their IT infrastructures and forced criminals to seek easier ways to do a heist.

Apart from that, CipherTrace performed a comprehensive examination of cryptocurrency exchange Know Your Customer (KYC) procedures. The results are sobering: 65% of the top-120 exchanges have weak KYC policies.

Only one-third of the exchanges have a strong KYC process in place. It means that users have to take several steps before they are able to make a deposit or withdrawal. 

They not only require the ID process but also proof of address. Some require a phone call or video chat to complete the KYC process, the researchers explained.
 

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Why XTZ traders need to be glued to the screen for next 48 hours

Why XTZ traders need to be glued to the screen for next 48 hours

Tezos (XTZ) price action has seen its winnings evaporate in late hours trading on Wednesday after the Fed minutes came out.

More Tezos News

Polygon’s MATIC forfeits on key-level and must go in search of ammunition

Polygon’s MATIC forfeits on key-level and must go in search of ammunition

Polygon (MATIC) is trading like one of the more popular first-person shooter games this week, such as Medal of Honor or Quake – and personally my own favorite.

More Polygon News

COIN bleeds as Coinbase slammed with insider trading allegations on 25% of new listings

COIN bleeds as Coinbase slammed with insider trading allegations on 25% of new listings

Australian researchers have gathered evidence of systematic insider trading on Coinbase.

More Cryptocurrencies News

Shiba Inu price to provide another opportunity before a 50% upswing

Shiba Inu price to provide another opportunity before a 50% upswing

Shiba Inu price is on the verge of triggering another run-up, but it needs to allow investors who partook in the previous rally to book profits.

More Shiba Inu News

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis

BTC

ETH

XRP