How to Protect Crypto from Illegal Activities

Cryptocurrencies offer a number of advantages in comparison with fiat currencies and people are willing to invest in cryptocurrencies. However, due to crypto-related crimes, it was not easy to convince people around the world, to use cryptocurrencies. However, people should take into account that criminal use of Bitcoin and other cryptocurrencies is very low. For example, less than 0.2% of the funds accepted by crypto exchanges come directly from criminal sources.

Nevertheless, users must pay attention to e-mails as they may lose their crypto assets. Let’s have a look at one example. Criminals could target unsuspecting individuals by impersonating various coronavirus-related organizations such as the World Health Organization (WHO), Red Cross, etc. 

Recently, digital-asset intelligence firm CipherTrace released its report connected with crypto-related crimes. According to this report, the value of ill-gotten funds siphoned through cryptocurrency crimes over the first five months of the year reached $1.4 billion. Moreover, if things continue at the same rate, the total value of stolen crypto has the potential to reach $4.5 billion as it happened in 2019. 

Interestingly, 98% of the total value of stolen crypto, nearly $1.3 is the result of a fraud and misappropriation. It means that criminal groups rely more on such methods rather than to hacks and direct thefts.

Crypto-related crimes and risk factors

Banks as well as smaller virtual asset service providers, and other money service businesses can safeguard themselves against criminals by deploying effective Anti-Money Laundering (AML) measures. 

The best way to accomplish this task is to find the optimal decision. For example, the solution based on an AML technological platform that enables institutions to verify the risk of blockchain transaction counterparties and to meet their regulatory requirements. 

People spend more time at home due to coronavirus pandemic. Unfortunately, scammers recognized this fact and are trying to use this opportunity to earn money. It means that people should pay attention to such cases to learn more about crypto-related crimes.