2018 scored $1 billion dollars in crypto thefts

December 12, 2018
Chris Wheal

According to the report published by the cryptocurrency intelligence firm CipherTrace, as of third quarter of 2018, almost $1 billion U.S. dollars worth of cryptocurrency has been lost in hacks and thefts. Among the two most significant ones, the report points out the loss of $530 million by the Japanese exchange Coincheck, as well as $195 million stolen from BitGrail. After the year’s end, the value of stolen cryptocurrencies is expected to surpass $1 billion, CipherTrace states.

crypto theft

Some exchanges were not even able to recover after the losses occurred. For instance, Bancor was forced to shut down operations after losing $23.5 million due to a breach of smart contract. Notably, one of the countries largely exposed to crypto thefts is the United States, with over 56% of them happening there.

In wave of growing cryptocurrency thefts and hacks, a number of countries worldwide started adopting their cryptocurrency regulations, with Japan leading the game with establishing a self-regulatory body, the Japan Virtual Currency Exchange Association (JVCEA), and placing it in charge of applying AML (Anti Money Laundering) and KYC (Know Your Customer) laws to ensure a safe playing field for all members of the cryptocurrency industry.

Additionally to the numbers and facts describing the current state of the industry, CipherTrace also provides a set of suggested guidelines to follow in order to avoid even being exposed to the hacks – among them are the recommendations to correctly store all your cryptocurrencies in a hardware wallet and avoid at all costs leaving it in a hot wallet on an exchange, where it gets easily exposed to everyone, including the hackers.

Post written by Chris Wheal
Chris Wheal is editor of OpenLedger's news and features service. An award-wining business journalists himself, he runs a team of freelance journalists from across the UK and north America.

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