• News
  • Business
  • Entertainment
  • Science / Health
  • Technology
Facebook Twitter Instagram
  • Contact Us
  • About Us
  • Write for Us
  • Privacy Policy
Facebook Twitter Instagram Pinterest VKontakte
EzineMarkEzineMark
  • News
  • Business
  • Entertainment
  • Science / Health
  • Technology
EzineMarkEzineMark
EzineMark » News » Cryptocurrency and Increased Crime Rate – Is there a Connection?
News

Cryptocurrency and Increased Crime Rate – Is there a Connection?

Angela SpearmanBy Angela SpearmanDecember 14, 2022Updated:December 14, 2022No Comments3 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Cryptocurrency and Increased Crime Rate - Is there a Connection?
Share
Facebook Twitter LinkedIn Pinterest Email

Introduction

Ever since the creation of Bitcoin in 2009 which is widely known as the first cryptocurrency ever created, the number of crimes committed using this means of money transfer has become almost uncountable. According to existing records, more than $2 trillion has been lost to fraudsters since the introduction of Bitcoin thirteen years ago.

The decentralized nature of Bitcoin (BTC) and every other cryptocurrency traded today has so much favored the activities of fraudsters making it possible to defraud investors without any trace for tracking the perpetrators.

This work has therefore examined in detail the different ways in which cryptocurrency has promoted crime across the globe since its creation.

Basic foundation of cryptocurrency

Cryptocurrency was created to serve as a decentralized means of payment. The first cryptocurrency – Bitcoin was created as a revolt against the traditional means of wealth storage using the banks and controlled by the government. People became displeased with the centralized means and desired something different. This was how Bitcoin was created to serve this purpose.

Every other cryptocurrency created after Bitcoin continued to maintain this standard. Cryptocurrency being decentralized has made it difficult to trace the identity of the dealers. Many fraudsters have taken advantage of this backdrop today. The results have been an increased crime rate.

We have therefore discussed these many ways through which cryptocurrency has led to an increased crime rate in the paragraphs below. 

Does cryptocurrency lead to an increased crime rate today?

Cryptocurrency has led to a high increase in the crime rate today. The number of crypto frauds committed today is simply unimaginable.  In 2020 for instance, it was reported that the losses from crypto-related crimes climbed to 79%  of the total crimes committed in 2020.

Both individual crypto investors, crypto companies, and exchanges have been victims of this fraud. Hence it has been estimated that more than 2 trillion has been stolen from crypto owners. The most popular crypto fraud in history is the hack of the Japanese crypto exchange Coinheck in 2018, where over $530 million worth of coins were stolen from the exchange in less than an hour.

Another significant crypto fraud is the Poly network attack where hackers stole roughly $600 million from the Defi platform. The only difference here is that the hackers later returned half of the funds stolen when the platform kept appealing publicly to them to do so. Thereby reducing the unrecovered funds to about $300 million.

Many individual crypto traders have suffered some form of attacks on their digital assets in the past too. It has been estimated that more than 15% of the crypto traders in every country had in the past been victims of crypto-fraud causing them to lose their assets with no hope of recovering them again.

What are the most common crimes perpetrated through Cryptocurrency

  • Money laundering: A lot of funds obtained via stealing and looting of public funds are usually covered up by pushing them into cryptocurrency. This makes it difficult to trace the origin of such funds.
  • Terrorists’ activities: One major criticism given to cryptocurrency today is that it is often used to sponsor terrorists’ activities. Thus, many secret organizations sponsoring terrorists used it as a convenient means for sending money to these terrorists to carry on with their activities.
  • Cyber fraud: The amount of internet fraud committed today using cryptocurrency is unimaginable. This includes attacking investors’ wallets, phishing, hacking, etc.

Can Cryptocurrency ever exist without any tendency to commit crime?

The Centralized nature of cryptocurrency has made it very difficult to control the crime rate committed through this means.

Angela Spearman
Angela Spearman

Angela Spearman is a journalist at EzineMark who enjoys writing about the latest trending technology and business news.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
Angela
Angela Spearman

    Angela Spearman is a journalist at EzineMark who enjoys writing about the latest trending technology and business news.

    Related Posts

    Online Gaming in Indonesia: Trends, Growth, and the Rise

    June 18, 2025

    Exciting Things to Do in Dubai That Will Recharge Your Body and Mind

    June 17, 2025

    Simple Ways to be a Good Neighbor

    June 10, 2025

    Demystifying Healthcare Insurance in the United States: What You Need to Know

    June 9, 2025

    Subscribe to Updates

    Get the latest trending news from EzineMark.

    Online Gaming in Indonesia: Trends, Growth, and the Rise
    June 18, 2025
    Exciting Things to Do in Dubai That Will Recharge Your Body and Mind
    June 17, 2025
    Simple Ways to be a Good Neighbor
    June 10, 2025
    Demystifying Healthcare Insurance in the United States: What You Need to Know
    June 9, 2025
    Gemini 2.5 Pro vs Claude Sonnet 4: A Practical Guide to Choosing the Right AI API for Developers
    June 9, 2025
    The Statue of Peace at the United Nations: A Symbol for the World
    June 8, 2025
    Ways to Entertain Your Pet Cat in Your Condo
    June 4, 2025
    Understanding Vision Insurance: What You Need to Know for Optimal Eye Care
    June 4, 2025
    Skye at Holland Elevating Living with Enhanced Connectivity under URA’s Transport Master Plan and Holland Drive Condo
    June 2, 2025
    Stretching the TDSR (Total Debt Servicing Ratio) for Maximum Leverage
    May 31, 2025
    Empower Your Brand with Strategic Website Redesign, Mobile App Innovation, and Branding Excellence
    May 27, 2025
    4 Techniques to Cleanse Energy in Your Condo
    May 26, 2025
    EzineMark © 2025
    • Contact Us
    • About Us
    • Write for Us
    • Privacy Policy

    Type above and press Enter to search. Press Esc to cancel.