Will 2019 be a record year for crypto scams?

[wwzsocki]

CipherTrace, a cryptocurrency research company based in Silicon Valley, has published the AML report for the second quarter of 2019. The study is a detailed review of the most serious cryptocurrency theft, scams, and fraud around the world.

The company estimates that only in the first three months of 2019, cybercriminals illegally obtained over $ 1.2 billion in cryptocurrencies. It is terrifying that the total number of thefts in the cryptocurrency sector in the entire 2018 amounted to USD 1.1 billion! These numbers keep growing and in Q2 2019 scammers appear to have defrauded millions of users out of $2.9 billion in crypto assets. Netting that criminals approximately have stolen already $4.3 billion only in Q1, Q2 of 2019. The report states that "reported thefts represent only visible losses." CipherTrace estimates that the real amount of losses are much higher."

Insider thefts were by far the largest offenders, inflicting massive losses on investors and exchange users. 2019 could also turn out to be the year of the exit scam. The operation model is simple. Fraudsters launch a new cryptocurrency, token or service based on a promising concept, and then collect money from investors as part of the ICO, then mysteriously disappear with investor funds.
One of the best-known examples of actions that bear the characteristics of exit scams is the recent case of QuadrigaCX.

The total dollar value of Q2 2019 thefts would currently be dramatically higher due to the recovery of cryptocurrency prices from the lows of the crypto winter, CipherTrace report uses the value of the lost loot at the time of the scam or robbery. In the report, you will also find analyzes and conclusions from the examination of cases like: Cryptopia, CoinBene, DragonEx, Bithumb, Coinbin, and many others.

Here a few examples of the latest exchanges thefts:
- $44 million from the world’s largest cryptocurrency exchange, Binance.
- $30 million from Japanese exchange BITPoint.
- $571 million from Asian exchanges to fund WMD and compensate for sanctions.
- $195 million from Canada’s major cryptocurrency exchange QuadrigaCX (exit scam).
- $23 million in Bitcoin lost and co-owner found dead after Polish exchange Bitmarket shutters due to “liquidity issues".
- $851 million lost by Bitfinex in a Panamanian payment processor also used by QuadrigaCX.
- $16 million from Cryptopia.
- $45 million from CoinBene On March 27, 2019.
- $1 million from DragonEx.
- $30.8 million from Bithumb the largest cryptocurrency exchange in South Korea.
- $26 million from CoinBin (exit scam).
- $10 Million in XRP Stolen from GateHub.
- $4 Million from Singapore Exchange Bitrue.

The world of cryptocurrency also abounds in financial pyramids. The biggest single loss in 2019 was the PlusToken program. The criminal activity involved in the development of an advanced trading bot that was supposed to bring investors a 10% profit per month. PlusToken platform reportedly recruited over 100,000 users and collected over $ 189 million thanks to membership fees only between May 2018 and March 2019. It is said that the amount of money stored by PlusToken is over $ 2.9 billion.

CipherTrace claims that 2019 may go down in history as the "year of exit scams. Will 2019 be a record year for crypto scams?

Source: https://ciphertrace.com/articles/q1-2019-cryptocurrency-anti-money-laundering-report/
https://ciphertrace.com/q2-2019-cryptocurrency-anti-money-laundering-report/
https://bithub.pl/wiadomosci/raport-czy-2019-okaze-sie-rokiem-exit-scamow/

[game-protect]

If I take a look at the number of scam reports we received, I have no doubt that 2019 will be a record for crypto scams!

Considering the dumbness and or greed of internet users I also have no doubt that 2020 will top 2019!

[Indamuck]

The total amount is nothing compared to the amount scammed with dollars.  Very few hacks are outsiders, its almost always someone on the inside doing the hacking.  We have already seen the Quadriga guy fake his own death so nothing is off limit to these criminals.

[wwzsocki]

The total amount is nothing compared to the amount scammed with dollars.  Very few hacks are outsiders, its almost always someone on the inside doing the hacking.  We have already seen the Quadriga guy fake his own death so nothing is off limit to these criminals.

We have to call it hack because this is the almost always the official reason behind multiple crypto exchange exit scams. We all know this is an insider job but has to be proved first before we can such accusations on them. We can't forget that hackers are real and they are another reason that crypto space is what it is today. They stole billions already and didn't stop and keep developing new technics and break new records every few months. seems almost impossible to stop them but something has to be done because hackers could be the biggest threat for cryptocurrencies.

If I take a look at the number of scam reports we received, I have no doubt that 2019 will be a record for crypto scams!
Considering the dumbness and or greed of internet users I also have no doubt that 2020 will top 2019!

Is the amount of scam reports you are receiving growing each year? If yes, could you please say how much more it is in percentage compared to 2018 or 2017?

I thought that with the introduction of "provably fair" casinos, scams in this industry should decrease, maybe not many people use them actually, but I wonder why?

[NeuroticFish]

Will 2019 be a record year for crypto scams?

Probably not.
There were plenty of crypto scams in the past too. Just since the prices were low, the amounts in US Dollars were not so overwhelming.
And there's a good chance the prices will be much bigger in the future. Bigger prices, bigger scams, bigger heists.
Although in theory the crypto businesses should become less sloppy in time, the reality shows that this doesn't really happen. And, as the price grows, more new crypto businesses are coming to life, becoming new potential targets.

[wwzsocki]

Will 2019 be a record year for crypto scams?

Probably not...

I hope you are right because as for now only in Q1 of 2019 there were more scams as in entire 2018. The situation keeps getting worse and only in Q2 of 2019, the number of cryptocurrencies stolen in USD was 3 times higher as in Q1. If this continues 2019 will be the record year of scams and this is nothing good for cryptocurrencies market.

As we see from these reports (links in the OP footer) only in half-year almost all major centralized exchanges were hacked or made an exit scam. If this continues nobody will be brave enough (especially newbies) to buy and trade cryptocurrencies as there is no safe place to this. I always knew that scams and hackers would be the biggest threat for cryptocurrencies.

[blurryeyed]

How ironic that a guy who is promoting a scam exchange in his profile is posting about how/why so many scams are happening. A search in the scam thread for livecoin reveals their scammy antics, yet this user has no problem promoting them for payment with stupid posts like this, again for payment.

Not only that, but the user is also using multiple accounts, trading merit, self-talking, etc, etc:

https://archive.is/515te

This is the type of user that a scam exchange like Livecoin is prepared to pay for promoting their scam - a scammer with multiple accounts who abuses the trust system - how typical.

User even had the audacity sent me a PM complaining about his negative feedback & threatening to dig into my account history if I didn't remove it! My reply:

Look as close as you like into my account - see if I give a fuck.

@wwzsocki: There's a link in my sig to help you in your digging into my account - knock yourself out.

As long as there are people like you promoting scams then scams will always exist.

[wwzsocki]

SNIP

Do something with your trust first before you start pointing your finger on me.

Nobody proved me without a doubt to have an alt account and you have been caught to have multiple alts and you are using them as we can see because yesterday you have written from Iconfirm account and after that, you painted me red from you second Blurryeyed account. Forget to log out?

As I told you in PM stop this and do something with your bad reputation and red paint first. Your post is off-topic so remove it or I will have to report it.

I see you painted me red from one of your alt accounts. I would like to ask you to refrain from such actions, especially if you have red paint in your account and are accused to have multiple alt accounts which you are obviously using like in this case.

How can you ask me to not advertise Livecoin if you don't know my story with Livecoin?

I was in the opposition to the first flag and participant in both campaigns from the start. From the start, I amusing Livecoin exchange on a daily basis and never had a single problem. For 3 weeks I was wearing the Livecoin signature without incentive only to show my opposition to the flag and to prove that not everybody is doing this for the money. This is the first week when I am enrolled and get paid. Additionally, the accusation case against Livecoin is resolved and the user got his account back. I think one scam accusation is not enough to call exchange with thousands of happy customers a scam. I would call this a support issue which could happen especially after 51% attack.

As I said try to do more research before the comment, especially if your own trust is far from ok.

Welcome on my IGNORE list.

[blurryeyed]

Welcome on my IGNORE list.

Good. Thanks.

https://web.archive.org/web/20190814120650/https://bitcointalk.org/index.php?topic=5175126.msg52158467

https://bitcointalk.org/index.php?topic=5166722.msg52158625#msg52158625

[Artemis3]

Yes, if the Korean 3 billion USD exit scam gets confirmed...

2019 the Year of the Exit Scam

[Maileynonac]

If I take a look at the number of scam reports we received, I have no doubt that 2019 will be a record for crypto scams!

Considering the dumbness and or greed of internet users I also have no doubt that 2020 will top 2019!

Said to realize this. Greed is slowly taking over crypto world

[mersal]

If I take a look at the number of scam reports we received, I have no doubt that 2019 will be a record for crypto scams!

Considering the dumbness and or greed of internet users I also have no doubt that 2020 will top 2019!

Said to realize this. Greed is slowly taking over crypto world

Greed or dumb?

I consider those people as dump because they don't know what is cryptocurrency but still investing on it to make money which doesn't considered to be greedy this is pure nonsense that is why scammers take advantage of this dumb people and scamming millions of money every year.

[Yettanasha]

I think 2019 has already set a record of amount of scams.

[wontshrug]

all of these are nothing compared to the ico scams of 2017 that took billions out of the economy

[omonuyak]

If I take a look at the number of scam reports we received, I have no doubt that 2019 will be a record for crypto scams!

Considering the dumbness and or greed of internet users I also have no doubt that 2020 will top 2019!

I am seeing this scam's report as the new way to create fud! Scam, hacking and fraudulent news are being promoted now and someone has just posted in one of the thread that "most of the scamming news is not verified". Maybe something is at the back end and before the end of the year, we would see the infect of all this bad news.

[wwzsocki]

I am seeing this scam's report as the new way to create fud! Scam, hacking and fraudulent news are being promoted now and someone has just posted in one of the thread that "most of the scamming news is not verified". Maybe something is at the back end and before the end of the year, we would see the infect of all this bad news.

Maybe you are right but all these scams I have listed in the OP are officially confirmed.

I agree that there is a lot of new about scams and maybe this is made on purpose to discourage people but that was not my intention when I have created this thread.

I can't argue with the facts and we all know that scams and fraud is and always was the biggest threat for cryptocurrencies.

Of course, the best way would be to stop this immediately but to achieve this a lot more discussion is needed and even more billions in losses for regulators to step in finally.  

We already see a change in the industry and there are almost no ICO which are famous or successful with funding in 2019. Crypto industry started to self regulate and IEO are the latest outcome. ICO problem solved almost instantly with IEO offered on the exchanges.

[wwzsocki]

I will lock this thread because from the moment when was moved to the off-topic section lost all attention. There were a couple of spammy answers too and the discussion just stopped. I am not reading the off-topic section frequently and see no sense to continue here with this topic because members try to use this thread only to write short spammy answers to fulfill their bounty requirements and the purpose was totally different. Thanks to all members who commented here on first and added an important voice in the discussion.

The thread is now closed.