Many countries around the world have expressed concern about decentralized finance and the lack of effective tracking of cryptocurrencies. The latest in cryptocurrency breaking news may provide some support to those governments expressing this level of concern about how to trace the use of cryptocurrencies in potential fraud cases. Increasingly, governments around the world are moving to some level of regulation. This movement is sparking heated debate across the USA.
The IRS Report
The Internal Revenue Service’s Criminal Investigations Unit shared the cryptocurrency breaking news that over 3.5 billion dollars have been seized this year, with months still remaining in 2021. This seizure of the cryptocurrencies was in fraud cases and through reported hacks and theft of the digital currencies.
While $3.5 billion dollars may seem like a very large amount of money, it represents only about 1% of all cryptocurrency transactions. Throughout the world, there were over 3 trillion dollars of transactions. This is a much lower percentage than fraud issues with traditional types of currencies.
The DeFi Issue
According to information from Elliptic, a blockchain analytics company, decentralized finance or DeFi theft and fraud was about $10.5 billion this year. There were two signficant security breaches that led Poly Network and PAID to suffer losses of $600 million and $180 million, respectively.
Unfortunately, as people become more aware of cryptocurrencies investment and they become more mainstream, hackers have more points of access and exploitation. These include investment schemes that defraud unsuspecting victims into believing they are investing in a cryptocurrency, only to find the scammers simply took their money.
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