THECRYPTO.WATCH – Based on a report from Chainalysis, it is known that the world of digital money is prone to being infiltrated by crime. Even the cryptocurrency crime in 2021 had increased to USD 7.8 billion. A fantastic number that was successfully owned by parties associated with these digital assets illegally.
Still according to Chainalysis, the misuse of this crypto money creates a big obstacle in the adaptation process. There are already so many innocent people who have become victims of this crime. Crimes that occur in cryptocurrencies are generally motivated by the PlusToken Ponzi scheme, with billions of dollars in assets.
3 Things That Cause Cryptocurrency Crime in 2021 Soaring
Criminal action can occur on various fronts, as well as in the world of cryptocurrencies. Even the cryptocurrency crime in 2021 reached USD 14 billion or equivalent to IDR 196 trillion. Of course, it’s not a petty crime case, considering the figures obtained are fantastic.
There are a lot of forbidden activities related to crypto. Starting from fraud, the darknet market, as well as ransomware, which rose by 80 percent compared to previous year. As for the things that caused the crime to occur, they are most likely influenced by the following 3 things.
The High Volume of Transactions
Chainalysis, based in the United States, said that the overall transactions were up to 15.8 trillion US dollars. This means that there is an increase of up to 5 times compared to 2020.
Digital assets in the form of crypto coins, tokens and NFTs continue to increase in prestige. Due to the large number of large companies and investors who want to own it. The huge profits that overshadowed Bitcoin also managed to attract the interest of new investors.
Prone to Money Laundering
In many countries, there has been concern about the magnitude of the risk of money laundering. Moreover, there are no strict regulations regarding cryptocurrencies, so investors are prone to getting caught up in crime. Finally, high-ranking officials in financial institutions urged parliament to act immediately.
High Crime in DeFi
Decentralized financial platforms or DeFi also have a role in driving the high rate of fraud and theft of crypto money. This is because the platform offers loans without going through standard procedures at the bank. The transactions that occurred also faced various disturbances, ranging from system weaknesses to poor governance.
It is hoped that the high cryptocurrency crime in 2021 will not happen again this year. So all parties concerned are not harmed again.