Cryptocurrency theft has been trending of recent. One of the major issues combating the cryptocurrency space is the issue of security of crypto holdings. Stolen cryptocurrencies are hardly recovered, only on rare cases are recovery recorded. A Reuters report revealed that there is only a 20% chance of recovering stolen cryptocurrencies.
Why Recovering Stolen Cryptocurrencies Is Rare
Recovering stolen cryptocurrency is usually rare, David Jevans, the chief executive of cybersecurity firm CipherTrace, noted that there is only about 20% chance of recovering stolen cryptocurrencies, because of the ease involved in the cross-border movement of cryptocurrencies.
The distributed ledger system that enhances the functions of cryptocurrencies enables the transfer of money without a chance of third-party influence. Also, it offers the privacy of data to users. These enable the use of Cryptocurrencies for illegal activities, such as money laundering, and drug deals.
Dave Appleton noted that after he lost around $3,000 worth of ether, there was no one to report the crime to, and he was not sure of the jurisdiction or country the stolen cryptocurrency would be transferred.
To recover stolen cryptocurrency, the step that could probably help as noted by Jevans is to get law enforcement in five countries that are interested in the case, have enough time and also have enough evidence to open a case. Also, by the time they agree, you must have obtained the necessary information, do the paperwork and move the money.
Meanwhile, for law enforcement agencies to get involved, millions must be at stake as noted by security experts. The effort of enforcement agencies to recover stolen cryptocurrency will not be worth it if the volume of cryptocurrency is small.
Rise Of Cryptocurrency Crimes As The Market Grows
Cryptocurrency market has been experiencing an increase in the rate of crime as the market continues to see development. The proportion of growth has also been the proportion of crimes, such as hacks, scams, malware attacks among others.
A report of a financial research firm, Autonomous NEXT and Crypto Aware revealed that about $1.7 billion worth of cryptocurrency had been stolen between 2012 and the first half of 2018. Meanwhile, over $800 million worth of cryptos was recorded to have been stolen in the first half of 2018, while 85% of all cases go unreported.
Further development of cryptocurrencies would probably tackle security of these assets, this, in turn, would bring a massive adoption of the new technology.