Crypto Crimes Drop In 2020, But DeFi Hacks Are On The Rise

It’s been revealed that there’s a new interesting report coming from the intelligence firm CipherTrace that’s showing the fact that crypto-related crime is dropping this year.

On the other hand, it looks like the booking FeFi sector is filled with hacks.

The company mentioned above reveals that the amount of money that’s been lost due to crypto fraud, hacks and theft reached $1.8 billion 10 months into 2020 – it’s important to note that this is significantly less than the $4.5 billion reported in 2019.

DeFi hacks on the rise in 2020

Also, the firm told Reuters that the total amount of cash stolen in DeFi hacks is $98 million – this is up exponentially from a “virtually negligible” amount last year.

CipherTrace CEO Dave Jevans said that centralized crypto exchanges are beefing up their security.

The nascent DeFi market, which consists of protocols that offer peer-to-peer ways to lend and borrow assets as well as earn yield for providing liquidity, is still vulnerable.

“Companies and individuals have rushed DeFi products to market that have not gone through security verification and validation. So people are figuring out that there’s a weakness here.”

Boosting security on exchanges

Reuters also noted that crypto crime hit $4.5 billion globally in 2019.

“What we have seen is that exchanges and other cryptocurrency players have implemented more security procedures,” Dave Jevans, CipherTrace’s chief executive officer, told Reuters.

He continued and said that “They have taken the guidance and implemented the procedures to secure their funds better. So you’re going to see less mass-scale hacks.”

We suggest that you check out Reuter’s original notes in order to learn all the available details.

The crypto market is booking these days, and there are also all kinds of bullish predictions about the prices of the digital assets, especially since BTC was able to hit $16k for the very first time in three years.

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I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.