Crypto crime rate reduced by more than 50% in 2020

  • Crypto crimes have reduced by over 50% in 2020
  • DeFi hacks, however, have recorded a growth of 20%

The rate of crypto crime has reduced massively in this year. According to CipherTrace, a study of the first 10 months of 2020 has shown that the figure is down by over 50%.

A similar study of the previous year showed that crimes related to cryptocurrencies were worth over $4 billion. CipherTrace says that the current worth of the crypto scams is currently a little under $2 billion. This shows a massive drop of over 50% reduction.

However, in the space of that same period, the DeFi sector of the crypto world has seen a massive rise in the numbers of scams perpetrated in the industry.

Dave Jenas, the CEO of CipherTrace, told Reuters that most crypto exchanges had improved their security features. He noted that crypto crimes cannot be carried out as frequent as they were used to before.

Cryptocurrency platforms cannot the exploited the way they used to be before. The CEO believes this has played a massive role in the decrease of crypto scam rates recently.

He further added that the crypto firms have implemented more measures that help them to secure their funds better. This factor will greatly reduce the numbers of hacks against the crypto industry.

DeFi scams makes up 20% of all crypto crimes in 2020

DeFi has witnessed a massive growth in the interest rate and usage by crypto enthusiasts in 2020.

As the Ethereum based sector has seen a rise in it its interest level, the crime rate in the sector have also grown rapidly. According to CipherTrace, this rapid interest in the sector played a role in the crypto crimes carried out in the industry.

The report noted that close to $100 million was stolen via DeFi hacks. The DeFi hacks were carried out on DeFi platforms that enable lending facilities outside of the traditional banks.