2018 scored $1 billion dollars in crypto thefts

December 12, 2018
Vitali Baranouski

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 Vitali Baranouski
Vitali is a bitcoin evangelist, and writes about cryptocurrencies for numerous publications. Started in 2013 he is also an active investor in cryptocurrencies and blockchain-based projects.

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