- Russia and the U.S dominate the list of countries involved in crypto fraud.
- Russia imposed a ban on holding of cryptocurrencies.
Chainanalysis reports that the United States and Russia are dominating the world as regards cryptocurrency frauds in the past year. In-depth analysis shows that Russia is primarily involved in the darknet, particularly when Russian cyber fraudsters infiltrated its notorious Hydra marketplace.
As per data from Chainanalysis above, the U.S comes just after Russia in terms of association with the darknet. However, the U.S is second to none when it comes to cryptocurrency frauds. China is another country involved in fraudulent practices but this time in ransomware. According to information, Chainanalysis linked its ransomware cons to the cybercriminals who belong to a Lazarus group in North Korea.
Recently, two Chinese residents were identified by a Department of Justice for spending cryptocurrencies stolen under the Lazarus group’s frame. Further investigations showed that the suspects were members of the Lazarus group.
Cryptocurrency frauds were neatly done
In 2020, about $1.3 billion worth of coins were laundered, and the number of cryptocurrency frauds conducted was on 270 wallets. With the illicit use of deposit addresses, the unknown cyber criminals were able to obtain nearly $80 million worth of coins.
These cryptocurrency frauds were neatly done in that they utilized OTC (over-the-counter) trading in small groups to withdraw all coins stolen. With the help of deposit accounts, these criminals were able to amass cryptocurrencies worth millions.
These cryptocurrency frauds forced the hands of the Russian government to ban the use of digital currency. The country took legal action early this year after publishing an announcement in December last year on their website regarding the need to kick against corruption. Now, it remains to be seen if this action will stop crypto frauds in the country as cybercriminals are increasingly polluting the entire cryptosphere.
With digital currencies looking to replace fiat currencies in the future, there is a need to put an end to cryptocurrency frauds in the world.