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INDUSTRY UPDATES & INSIGHTS

February 11, 2020

  • CipherTrace releases its Quarterly Cryptocurrency Anti-Money Laundering Report
  • CipherTrace CEO to address FATF Virtual Assets Coordination Group

CipherTrace Research Finds Insider Frauds Skyrocketed in 2019 Contributing to Total Crypto-Crime Losses of $4.5 Billion

CipherTrace released its Q4 2019 Cryptocurrency Money-Laundering Report today. Among key research findings, cryptocurrency users, exchanges and investors suffered $4.5 billion in crypto-related losses resulting from thefts, hacks, fraud. The lion’s share of those losses stemmed from the staggering growth of Ponzi schemes, exit scams, and misappropriation of funds crimes.

CipherTrace Labs also revealed traditional financial services have become increasingly infused with crypto-assets. For instance, results of an extensive analysis of the blockchain found almost all U.S. banks harbor illicit virtual asset related money service businesses (MSBs), including cryptocurrency exchanges.

“Our research revealed some surprising trends in 2019,” said David Jevans, CEO of CipherTrace. “First, there was a dramatic shift away from outright thefts and exchanges hacks and toward Ponzi schemes, exit scams, and other con games. Second, like them or not, banks have a lot more virtual assets lurking in their accounts and payment networks than most in the industry had previously thought. Banks need new capabilities to ferret out illicit MSBs, terrorist financing, and other major sources of risk.”

Dave Jevans to Address Financial Action Task Force 

CipherTrace CEO Dave Jevans will address the FATF Virtual Assets Coordination Group on February 17th in Paris. At this meeting, relevant private sector bodies will brief interested representatives from the FATF membership on how they are approaching the problem of complying with the FATF Cryptocurrency Travel Rule ahead of the June 2020 deadline.

CipherTrace has proposed an open-source, off-chain solution that preserves cryptocurrency user privacy—the Travel Rule Information Sharing Architecture (TRISA). Learn more about TRISA and get involved with building the future of crypto at https://trisa.io/.

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