So much disappeared in crypto fraud in 2021

So much disappeared in crypto fraud in 2021

Cryptocurrencies are digital currencies that are decentralized. In practice, this is something that makes the cryptocurrency different from the traditional means of payment we know.

When a “normal” transaction is carried out, a total of three parties are involved: the sender, the recipient and the bank. As cryptocurrencies are decentralized, there are only two parties involved. Power has been shifted, and it no longer sits with the bank.

In addition, most cryptocurrencies are built on an open source code. This means that the codes of the cryptocurrency are available to anyone who wants to look at it. This is also often used as an argument that cryptocurrency is not of interest to fraudsters.

Hvordan fungerer kryptovaluta og blokkjeder?

But even though that may be how it works in theory, the numbers show otherwise. With that said, it is probably not the source code that preoccupies the fraudsters, but rather the values that lie in it. And this we will take a closer look at in this article.

Defi-crime exists

More and more people are investing in cryptocurrencies. In line with this, the numbers of crypto fraud are also increasing, although one would very much like to think that this does not occur. Crypto-fraud is also called defi-crime.

Defi-crime is a compound word. Defi is an abbreviation for decentralized finance, and crime is crime. Defi-crime thus refers to crime that is committed in connection with decentralized means of payment, which of course includes cryptocurrency.

Gir kryptovaluta økt kriminalitet?

Theory and practice are two different things

In theory, cryptocurrency is presented as a fairly watertight form of investment, but here it is important to remember that theory and practice are two quite different things.

Elliptic is one of the companies that specializes in preventing crime in connection with cryptocurrency. And the figures from various surveys they have done give us a completely different impression.

Surveys are conducted every year

Crypto-fraud is a much bigger problem than many people think, and Elliptic conducts such surveys every single year. The purpose of these surveys is to raise awareness about this.

So much disappeared in crypto fraud in 2021

This is a highly topical issue, and both Elliptic and other companies have conducted a number of investigations in connection with this . What emerges from these surveys is quite overwhelming.

In 2019, NOK 40 billion was lost to crypto fraud, while in 2020 it was NOK 95 billion. Corresponding surveys for last year, ie 2021, show that during this year around NOK 110 billion in cryptocurrencies disappeared. That’s a lot of money!

In practice, this simply means that interest in cryptocurrencies is growing at a very rapid pace, both as a potential investment object and in connection with potential offenses.

One must be aware anyway

Elliptic’s surveys not only show how much value is lost during an entire calendar year in connection with crypto fraud, but it is also a sign that it is important to be careful no matter what you invest in. You can not be completely safe from crime!

To store cryptocurrency securely:

Author Ludvig

Ludvig har lang erfaring med kjøp og salg av kryptovaluta. De senere årene har han tatt det til et nytt nivå og prøver å leve av kryptovaluta trading. Han følger godt med på markedet og har opparbeidet seg god kompetanse på teknisk analyse mm. Vi er veldig glad for å ha Ludvig med på laget, og er det noe du lurer på angående kryptovaluta er dette mannen du spør!