Cryptocurrency Criminals increased their activity last year, performed more hacks, but stole less money.
According to blockchain analytics company Chainalysis, there were more cryptocurrency hacks in 2019 than ever before.
[Read: Here’s how law enforcement catches cryptocurrency criminals]
None of the 11 hacks that occurred in the past year matched Mt. Gox & # 39; s $ 473 million collapse in 2014 or Coinchecks $ 534 million hack in 2018).(think
When a result that The total of from Exchanges was stolen significantly decreased to 283 million worth Cryptocurrency .
Chainalysis counted hacks in which technical vulnerabilities and attacks were exploited through social engineering or other means of deception.
They counted only attacks the bad attacks enabled actors have access to funds from stock exchanges and not to purse providers, payment processors investment platforms or other services .
Their methodology also ignored exit scams or cases in which user exploited an exchange error. Finally, Chainalysis included only attacks in which the stolen amount was publicly measured and confirmed by several sources.
Comparison of the size of cryptocurrency hacks
The average and the average amount ] stolen from hackers fell significantly in 2019 after having increased sequentially over the past three years.
Only 54 percent of the hacks observed last year generated over $ 10 million compared to all hacks reported in 2018.
Although the increase in the number of individual hacks needs to be taken into account, the data shows that the exchange has improved to limit the damage hackers can do, Chainalysis says.
Yes, but where is the stolen cryptocurrency going?
Analysis of the blockchain Chainalysis concludes that the majority of stolen money is ultimately sent to other exchanges from where it is likely is converted into Fiat .
Still, a significant portion of the ] stolen money is not spent, sometimes for years, which means that law enforcement could still catch up with cyber thieves.
The company also found that it and in 2019 an increasing portion of the stolen money will be passed on to third-party blenders or CoinJoin wallets to hide their illegal origin] security more seriously, and while this can help some of you to sleep better at night do not forget that criminals are likely to adapt and therefore rely on increasingly sophisticated methods access to customers s & # 39; Funds .
Published January 22, 2020 – 14:00 UTC