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Bitcoin Global News (BGN)

January 31, 2019 -- ADVFN Crypto NewsWire -- A recent report by Chainanalysis summarizes a series of reports on the most pressing issues at hand for securing blockchain networks. The company creates data-driven content on cryptocurrency markets, regulation, and developments. Potentially, the biggest finding from the company is that 60% of hacks are likely from one of two groups who perform thefts in distinct ways. The report: “Crypto Crime Report: Decoding Hacks, Darknet Markets, and Scams” covers four major topics.

• Darknet Markets - the biggest problem with attempting to suppress darknet activity is the “whack-a-mole” problem. The report takes a detailed look at how to shift the problem that law enforcement closes down one darknet market, but the activity will always continue at another.

• Ethereum Scams - Regarding Ethereum scams, the company looks into how scammers are taking advantage of ERC-20 tokens, and highlight out how pervasive ethereum scams actually are.

• Hacks - the term is often highly misunderstood, and the process of getting away with cryptocurrency theft is rarely covered after a hack occurs. The researchers decode how hacking organizations are able to move stolen funds, as well as noting what exchanges can do to contain the damage.

• Exclusive Webinar - As a conclusion and introduction to further research, the Chainalysis senior economist, Kim Grauer, presents the comprehensive research of illicit activity involving cryptocurrency and accepts live questions from the audience.

“On average, the hacks we traced from the two prominent hacking groups stole $90 million per hack. The hackers typically move stolen funds through a complex array of wallets and exchanges in an attempt to disguise the funds’ criminal origins.”

Headlines vs. Real Effect

Overall, the report touches on almost all of the topics that build the argument against cryptocurrencies. The fear of hacks, theft, darknet markets and a general misunderstanding of Ethereum keep the vast majority of people from taking a step into cryptocurrency use. Notable, Bitcoin does not hold a primary topic in the report. This highlights the fact that the Bitcoin network has never been hacked.

The bigger issue at hand which is often glossed over in headline news articles is that the theft occurs from security issues of a centralized cryptocurrency custodian, like an exchange. Further, the media creates major stories about darknet market crime, yet the report notes that “crime makes up a small subset of a much larger cryptocurrency market.” 

Ethereum-based scams rising and falling with cryptocurrency prices, to darknet markets showing resilience against market trends, to hacks being carried out by professional organizations with distinct modus operandi. We take a deep dive into three types of crypto crime and the implications for the larger cryptocurrency ecosystem.

By: BGN Editorial Staff