For frauds and cybercriminals, 2019 has been a harvest year. This year $4.26 billion in total has been stolen from cryptocurrency exchanges, investors and users. Below, you will find five the most notorious cases of cryptocurrency theft in 2019.
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As a result of a massive investigation and sting operation, police in Europe have uncovered a criminal organization spanning the Czech Republic and Bulgaria that was engaged in the illegal operation of binary options and crypto trading platforms. Users of these crypto platforms were promised high returns on their investments but were almost lost $114 million in total as part of the fraud scam.
Amit Lakhanpal is one of four men who has been accused of stealing $71.6 million as part of an ICO scam. To attract investors, it is said that he and his partners inflated the price of his cryptocurrency and claimed that the royal family of Dubai supported his project.
In Taipei, seven men were accused of cheating more than 1,000 investors extorting almost $51 million from them as a result. Clients endowed their assets to them hoping to get 335% in yearly returns. Soon the returns ceased, and the investors ended up losing money.
This case will no doubt lead to the detainment of these men. Also, it has made the Taiwanese Cabinet acquaint corrections with the Money Laundering Control Act and the Terrorism Financing Prevention Act, so as to control direct crypto activities.
Binance, one of the world’s largest cryptocurrency exchanges, had bitcoin worth $40 million stolen in May.
While it is uncommon to see an established exchange like Binance get hacked, the cybercriminals managed not only to steal 7,000 bitcoin but also two-factor authentication codes and API tokens.
The impact of the hack wasn’t too great on Binance, as it only affected 2% of their overall holdings.
Two brothers from Israel were arrested for an alleged phishing scam that lasted for three years.
Eli and Assaf were linked to the Bitfinex hack after $1.5 million worth of stolen Bitfinex Bitcoin moved from the hackers’ account at the start of the month.
They are alleged to have lured investors from crypto trading forums such as Reddit onto websites that mimicked prominent crypto exchanges.
The 2016 Bitfinex hack was one of the biggest cryptocurrency trading platform hacks when it happened. At the time, Bitfinex was one of the largest cryptocurrency platforms around. When the hack happened, Bitcoin price fell by 20%, affecting global cryptocurrency trades. The exchange never recovered, and from a top 10 exchange, it now hovers around the #30 and #50 rank.
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Cryptocurrency is a fairly new concept for many people. Some time after Bitcoin was first introduced to the world, it was in the news for all right reasons, as many people who invested got rich overnight. Suddenly its value increased and people started scrambling to buy more. Then the coin was dissected and sold in parts. As a potential investor, you may have heard a lot of hearsay about Bitcoin and must be wondering, is Bitcoin safe? You may also have heard of some negative news associated with Bitcoin.
Do you want to invest in cryptocurrencies? Investing in cryptocurrency can be quite intimidating if you’re only just learning about its existence now. In fact, taking the plunge and entering the cryptocurrency sphere is a volatile experience for anyone, with or without investment background. This is because the crypto space has no centralized authority to guide investors. Rumors, hype and horror stories dominate the internet, therefore separating fact from hearsay can be difficult at times.
Cryptocurrencies have been around for some years now. With the emergence and growth of different cryptocurrencies such as Bitcoin, Bitcoin Cash, LiteCoin, etc., more and more people are choosing to invest in crypto and use crypto for daily transactions. There are many reasons why people are making the switch to pay with crypto. Here are the five most important reasons: