Cryptocurrency theft hits nearly $1 billion in first nine months

Digital currencies stolen from exchanges in 2017 totaled just $266 million, according to a previous report from CipherTrace. (Reuters)
Updated 10 October 2018
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Cryptocurrency theft hits nearly $1 billion in first nine months

  • Digital currencies stolen from exchanges in 2017 totaled just $266 million

NEW YORK: Theft of cryptocurrencies through hacking of exchanges and trading platforms soared to $927 million in the first nine months of the year, up nearly 250 percent from the level seen in 2017, according to a report from US-based cybersecurity firm CipherTrace released on Wednesday.
The report, which looks at criminal activity and money laundering in the digital currency market, also showed a steadily growing number of smaller thefts in the $20-60 million range, totaling $173 million in the third quarter.
Digital currencies stolen from exchanges in 2017 totaled just $266 million, according to a previous report from CipherTrace.
Bitcoin’s popularity and the emergence of more than 1,600 other digital coins or tokens have drawn more hackers into the cryptocurrency space, expanding opportunities for crime and fraud.
“The regulators are still a couple of years behind because there are only a few countries that have really applied strong anti-money laundering laws,” Dave Jevans, chief executive officer of CipherTrace, told Reuters in an interview.
Jevans is also the chairman of the Anti-Phishing Working Group, a global organization that aims to help solve cybercrime.
He said there are likely 50 percent more criminal transactions than those that were traced for this report. For instance, CipherTrace is aware of more than $60 million in cryptocurrency that was stolen but not reported.
The data also showed that the world’s top cryptocurrency exchanges from countries with weak anti-money laundering regulations have been used to launder $2.5 billion worth of bitcoins since 2009. The top 20 virtual currency exchanges in terms of volume were analyzed for the report.
The CipherTrace report declined to name those exchanges.
These money-laundered funds represent transactions that CipherTrace was able to directly monitor and designate as criminal or highly suspect.
In estimating the $2.5 billion, CipherTrace looked at about 350 million transactions from the 20 exchanges and found 100 million of those with counterparties. From there, the firm was able to cross-check the 100 million transactions with its own data on criminal activity.
At the same time, these exchanges have also been used to purchase 236,979 bitcoins worth of criminal services, equivalent to approximately $1.5 billion at current prices, the report showed.
“All exchanges get these money-laundered funds. You really can’t stop them,” said Jevans.
“And here’s the reason why. We learn about the criminal stuff often times after it actually happened. So, there’s no way to know in real time. You can know 80-90 percent of the time, but it’s impossible to know 100 percent,” he added.


In nod to debt concerns, China Belt and Road summit to urge sustainable financing

Updated 21 April 2019
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In nod to debt concerns, China Belt and Road summit to urge sustainable financing

  • The Belt and Road Initiative envisions rebuilding the old Silk Road to connect China with Asia, Europe and beyond
  • But the initiative has proved controversial in many Western capitals, particularly Washington

SHANGHAI: World leaders meeting in Beijing this week for a summit on China’s Belt and Road initiative will agree to project financing that respects global debt goals and promotes green growth, according to a draft communique seen by Reuters.
The Belt and Road Initiative is a key policy of President Xi Jinping and envisions rebuilding the old Silk Road to connect China with Asia, Europe and beyond with massive infrastructure spending.
But it has proved controversial in many Western capitals, particularly Washington, which views it as merely a means to spread Chinese influence abroad and saddle countries with unsustainable debt through nontransparent projects.
The United States has been particularly critical of Italy’s decision to sign up to the plan last month, the first for a G7 nation.
In an apparent nod to these concerns, the communique reiterates promises reached at the last summit in 2017 for sustainable financing — but adds a line on debt, which was not included the last time.
“We support collaboration among national and international financial institutions to provide diversified and sustainable financial supports for projects,” the draft communique reads.
“We encourage local currency financing, mutual establishment of financial institutions, and a greater role of development finance in line with respective national priorities, laws, regulations and international commitments, and the agreed principles by the UNGA on debt sustainability,” it added, referring to the United Nations General Assembly.
The word “green” appears in the draft seven times. It was not mentioned once in the summit communique from two years ago.
“We underline the importance of promoting green development,” the draft reads. “We encourage the development of green finance including the issuance of green bonds as well as development of green technology.”
The Chinese government’s top diplomat, Wang Yi, said on Friday that the Belt and Road project is not a “geopolitical tool” or a debt crisis for participating nations, but Beijing welcomes constructive suggestions on how to address concerns over the initiative.
A total of 37 foreign leaders are due to attend the April 25-27 summit, though the United States is only sending lower-level representatives, reflecting its unease over the scheme.
The number of foreign leaders at the April 25-27 summit is up from 29 last time, mainly from China’s closest allies like Pakistan and Russia but also Italy, Switzerland and Austria.
China has repeatedly said Belt and Road is for the benefit of the whole world, and that it is committed to upholding globally accepted norms in ensuring projects are transparent and win-win for all parties.
“We emphasize the importance of the rule of law and equal opportunities for all,” the draft reads.