BlockChain News

Crypto Theft Surges in 2018. This Company Offers a Solution

Three times more cryptocurrency was stolen from exchanges in the first half of 2018 than in the whole of 2017, according to new research, which finds that Bitcoin is the cryptocurrency of choice for cyber extortionists.

The CipherTrace 2018 Q2 Cryptocurrency Anti-Money Laundering Report, released last week, outlined the scale of the multi-billion dollar cryptocurrency money laundering problem that is attracting the attention of regulators globally.

In terms of criminal activity taking place, the report stated that USD 761 million of theft took place from cryptocurrency exchanges in the first half of 2018, compared with 2017’s total for the year of USD 266 million. The pace of the increase does not look to be slowing either. CipherTrace suggests that losses could reach USD 1.5 billion by the end of the year.

The inter-governmental Financial Action Task Force (FATF) is cracking down on cryptocurrency money laundering, with rules which seem strict on the surface, including a call for exchanges to be registered or licensed, verification of customers’ identities and reporting suspicious trading and transactions. Currently, these rules are voluntary but the FATF is considering making crypto exchange rules binding and additional global enforcement action is also expected from the US Financial Crimes Enforcement Network (FinCEN). This is likely to target money laundering services, crypto-to-crypto exchanges and privacy coins.

“Until now, the lack of regulatory guidance has hindered the broader adoption of cryptocurrencies. Now we are seeing the big guys coming together asking for cryptocurrency anti-money laundering regulation — it is inevitable, it will be unified, and it will be global,” said Dave Jevans, CEO of CipherTrace and co-chair of the Cryptocurrency Working Group at

“There will be little room for privacy coins without AML [Anti-Money Laundering] in these Know Your Customer and Anti-Money Laundering regulated regimes. This will also be a wake-up call for virtual currency exchanges and financial institutions, exposing them to the risk of stiff penalties.”

The company is launching a Cryptocurrency AML Compliance Solution, aimed at exchanges, hedge funds, initial coin offerings (ICOs), money transfer agents and banks, to help them safely participate in crypto asset markets, while minimizing compliance efforts and costs. According to CipherTrace, this tool can handle massive numbers of transactions and value and traces the flow of funds through the crypto ecosystem.

The product uses machine learning algorithms and a “Crypto Intelligence Sharing Network” to calculate risk scores for transactions based on whether the funds have traveled through dark markets, money mixers, gambling sites or are associated with known criminals.

  • Crypto Theft Surges in 2018. This Company Offers a Solution – July 11, 2018
  • Token Gesture by SEC Director William Hinman – July 10, 2018
  • Block.One Brings in Jefferies Asia Head to Lead EOS VC – July 9, 2018
  • IBM Wins Billion Dollar Blockchain Contract in Australia – July 9, 2018
  • Blockchain Banking Milestone: European Banks Complete First Live Trades on We.Trade Platform – July 5, 2018
  • Tax Authorities Unite to Target Cryptocurrency Crime – July 5, 2018
  • Globacap Raising Capital on Own Platform with UK FCA Backing – July 5, 2018
  • Blockchain Close to Breakout Moment: Deloitte Survey – July 5, 2018
  • Survey Finds Turkey is Europe’s Most Crypto-Friendly Nation – July 4, 2018
  • Music Streamer Choon Starts Public Sale After Banking $2 Million – July 4, 2018
  • Russian Military Sets Up Blockchain Research Lab – July 3, 2018
  • TrustLogics Recruitment Platform Wins Stevie Award – July 3, 2018
  • IP Gold Ditches Ethereum for NEM Blockchain – July 2, 2018
  • Binance Labs Lead $12 Million Funding Round for StartUp Access Platform Republic – July 2, 2018
  • Are Digital IDs the Start of a Blockchain-Based Service Economy for the Cayman Islands? – July 2, 2018
  • QRL Launches Quantum Resistant Blockchain – June 29, 2018
  • User Friendly Exchange Targets US Crypto Newbies – June 29, 2018
  • Dash Doc Highlights Digital Currency Solution for Zimbabwe – June 28, 2018
  • Virtual Twin Method Wins EU Anti Counterfeit Challenge – June 27, 2018
  • Stanford University Takes Blockchain Leap – June 27, 2018
  • Dutch Airport Adds Bitcoin ATM for Euro Exchange – June 26, 2018
  • SharesPost Gets $15 Million to Expand Security Token Trading – June 25, 2018
  • Eidoo Unveils Crypto Sculpture in London – June 25, 2018
  • Canada: a Blockchain Testing Ground for Cannabis Cultivators – June 22, 2018
  • Medicalchain Inks Deal with Mayo Clinic to Advance Health Tech – June 21, 2018
  • TrustToken Raises $20 Million with Major VC Support – June 21, 2018
  • Adents Adds Microsoft AI to NovaTrack Supply Platform – June 20, 2018
  • AlphaPoint Raises $15 Million with Galaxy Ventures Funding – June 19, 2018
  • Fractional Shares in Robinhood, Ripple and Didi Available From Swarm Fund – June 19, 2018
  • WAVES Tokens Take a Ride on OKEX Exchange – June 18, 2018
  • Europe’s Leading Parking Services Network Launches ICO – June 18, 2018
  • Hdac Scores with World Cup TV Blockchain Advert – June 15, 2018
  • Swedish Sports Brand Puts Same-Sex Marriage on the Blockchain – June 15, 2018
  • Whale Hunter Spiking Links with AntShares Founder’s Latest Blockchain, Nebulas – June 15, 2018
  • Swytch Pilots Clean Energy Rewards in Germany, Launches ICO – June 14, 2018
  • Coinbase Opens Index Fund for Investments up to $20 Million – June 14, 2018
  • South Africa Reserve Bank Makes Progress with Quorum Blockchain Pilot – June 12, 2018
  • Wallets and Exchanges Fail Identity Check Test – June 12, 2018
  • Now ‘Ask Juliet’ for Crypto Tips on TokenAI – June 11, 2018
  • Iconic Warhol on Slate at Blockchain Auction – June 8, 2018
  • “Quasi Unicorn” Hyperchain Seals RMB 1.5 Billion Financing – June 8, 2018
  • COBINHOOD Launches DEXON Platform for Faster Processing – June 7, 2018
  • Subway Jumps on FoodLogiQ Supply Chain Pilot – June 7, 2018
  • RecordFarm Token Lists on Coinbene – June 7, 2018
  • Award-Winning Crypto Comedy: KevCoin the Movie Premieres June 28 – June 6, 2018
  • SEC Appoints Crypto Securities Czar – June 6, 2018
  • FundRequest Platform Rewards Open Source Software Fixes – June 5, 2018
  • Cashaa Links to Populous Marketplace, Commences Token Redistribution – June 5, 2018
  • Blockchain Expo Europe 2018 Rolls Into Amsterdam – June 4, 2018
  • $300 Million Monster ICO Planned by Cables and Headphones Firm – June 4, 2018

View All Articles

Related posts

Litecoin Price Analysis: LTC/USD Gaining Bullish Momentum


Cardano (ADA), EOS, & Steem


Stellar (XLM) Price Analysis: Bearish Pullback Opportunity in Sight!