Cryptocurrency related scams have taken about of 381-Million USD from victims up to now this year. This figure makes crypto scams the biggest category of cryptocurrency-related crimes to up till now in 2020.
Chainalysis information still reveals that the current figures are well below those were seen in 2019, while the scams accounted for 74 per cent of crypto-related crimes.
The current 2020 drop by the value of crypto scams is attributed to the absence of a strict fraud, just like the Plustoken Ponzi scheme.
Overall, the scam took 13.14 Bitcoin worth approximately USD 120,000 throughout the afternoon, though, as we will explore, the hackers most likely contributed a number of that total.
Crucially, Chainaylsis’s information also reveals that the share of cryptocurrency-related crimes to overall crypto activity remains well under 1 per cent.
However, the block-chain analytics company cautions that current figures are only preceding. The last number might progress as earlier unreported scams are exposed.
When, on the 15 July Twitter hack, Chainalysis records that the scam committed by the hackers is not a new thing now. A well-known person or company on social media implored the consumers to transfer cryptocurrency in return has been happening for years.
Studying the information collected by Cryptoscamdb, an open-source database, Chainalysis points out that this kind of scam estimates for about 71 per cent of all crypto scams listed since June 2018. He also reveals that Twitter hackers have stolen 13.14 Bitcoins worth approximately 120,000 USD.
The analytics company has identified three significant addresses employed by scammers. Still, it records, “most of the looted funds were combined within the bitcoin purse address,” which it terms the scam cash-out location.
Moreover, round about 21 Bitcoin deposited to the scam cash-out address over the lifetime of that purse. Similarly, on 22 July 2020, as of 4:30 PM, approximately 9 Bitcoins are sitting in 23 wallets, 8 Bitcoin has been transferred to mixing services such as Wasabi Wallet, and 4 Bitcoins has been moved to other beings.
Although, Chainalysis denies to divulge more details, worrying this might endanger ongoing inquiries. Meantime, a whopper alert post on Twitter 23 July news, “an amount of 1.8526 Bitcoins approximately 17589 USD was made to a verified fake giveaway scam.
In a similar blog post, Chainalysis further supports the significance of the block-chain investigation. It explains that the visibility into fund movement empowered by cryptocurrencies like bitcoin performs a more harmless, more transparent asset than cash and other common kinds of value shift.
Unluckily, cryptocurrency scams are nothing unique. As we searched in our 2020 Crypto-Crime Report, scams are far and away from the first widespread category of cryptocurrency-related crime, estimating for 74 per cent of all unauthorized transaction volume in 2019. Therefore, Cryptocurrency scams have remained to be a severe issue in 2020.
Can enforcement agencies catch crypto criminals using block-chain analysis tools? Share your views on what you believe in the comments box.