At the moment, cryptocurrency crimes are the equivalent of the “Wild West.”
While frauds and scams are highly prevalent, many go unreported. In fact, there are cases where victims won’t report the crime, think nothing of it, and just buy more coins.
As ridiculous as it sounds, it’s happening more often than you think
Since many victims “don’t see the point” of reporting theft, scams continue. After all, why would a thief stop if they’re getting away with it?
Autonomous NEXT and Crypto Aware say 15% of cryptocurrencies have been stolen over the last six years, as reported by Reuters. But with no one reporting the crime, it continues.
“Lex Sokolin, a partner and global director of fintech strategy NEXT, estimates that as much as 85 percent of crimes go unreported and says the published statistics only represent publicly reported heists.”
Millions of Dollars at Stake with Crimes
David Jevans, CEO of CipherTrace says only a fifth of stolen coins can be recovered because of the ease with which digital tokens be moved.
“You have to get law enforcement in five countries interested enough, have time enough, and have evidence enough to open a case,” he said, as quoted by Reuters. “By the time they agree, get the information, do all the paperwork, the money has been moved.”
Crimes are Prevalent in the Industry – Just be Aware
Due to a lack of proper rules and regulations, the sector is fraught with scams. Therefore, investors need to conduct comprehensive due diligence before investing in any ICO project.
Fortunately, we are beginning to see more action taken against scams.
It may sound ridiculous that folks aren’t reporting cryptocurrency thefts, and downright dumb, but it’s happening.
Why would a thief stop stealing if he knows he can easily get away with it?
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