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Increasing cryptocurrency thefts call for interference from the police

crypto
TL;DR Breakdown
  • Large-scale crypto hacking attempts are increasing with time.
  • Security authorities are making record recoveries of stolen funds.
  • Police officers are being trained for crypto, as they continue to bust crypto stealing dealers and hackers.

According to the latest reports, the number of crypto scams and thefts is increasing rapidly. As much as this industry is gaining global acceptance and recognition, more illicit factors are also marking their entry into the industry. Over the course of last year, several million-dollar crypto scams have been reported on different networks and protocols.

However, at the same time, higher authorities are also moving to control the situation. In this positive development, authorities and police have successfully recovered several stolen assets. This is not only helping people that lost their assets, but it is also ensuring more safety and security in the crypto space.

Security authorities move to make crypto recoveries

In the mid of last year, the Manchester police force was able to cut the party short of a colossal currency scam attempt. They seized several USBs alongside a digital safe containing $16m in crypto assets. Most of these assets were ETH tokens. A month prior to this incident, Leicestershire police were able to recover ten different crypto coins through a raid at a drug dealer’s house. This dealer was involved in using the currency for purchasing and selling drugs.

Not only this, but the Metropolitan Police was also able to conduct a crypto haul of almost £180m in 2021. It is an indication of how security authorities are functioning to safeguard the assets and funds of consumers. Furthermore, the information record of 27 UK regional police services indicates that large-scale action has been taken against digital currency scams and hacks since 2017. The number of raids has increased significantly, as more funds were also recovered in the meantime.

These figures have seen a massive surge in 2021 when compared to the years before that. In 2021, almost 22 different types of digital tokens were confiscated. It was a major boost from the four types of digital coins captured in 2020.

Bitcoin and Ethereum remained at the top of the list of scammed assets. However, several other tokens, including stablecoins were also pursued by criminals. In the recovery made by Leicestershire police, DOT, Neo CHZ, and Enjin coins were found. In another recovery attempt by the South and West Wales Regional Crime Unit, 8 crypto coins were seized. The list included the likes of CAKE and the Luxury Coin, respectively.

Recovering stolen crypto assets is a learning curve for security officials!

Experts and officials believe that the police force is gradually adapting to these scams and hacks. With time, their response will get better and more effective towards crypto crimes. The coordinator of the national police response to crypto crimes, Phil Ariss, has recently told that about 300 officers were trained in cryptocurrencies. Furthermore, hundreds of other police officers will receive similar instructions shortly. It will prepare them for the challenges posed by the incidents in the digital currency arena.

Most of these officers are dealing with the investigations of various digital currency scams. These cases feature almost 35-40 types of digital coins. The cases they deal with are not only limited to theft or scams. But some cases link up with money laundering, drug trafficking, and financing of terrorism.

The details of these cases are mostly kept private. Authorities believe that disclosing the details like the total amount of assets confiscated will alarm other scammers. Therefore, the investigations are kept secret most of the time. There are instances when authorities have revealed the value or worth of recovered assets.

In addition to this, security authorities usually outsource storing the recovered digital assets. They mostly use e-wallets through a third-party provider. However, the names of the companies or exchanges approached to offer these services are also kept private for security reasons.

It is believed that with the expansion of the market, more bad actors will mark an entry into this sector. These criminals are attracted to the anonymity and decentralization offered by crypto and blockchain. However, the increasing ability of police and security officials will help in keeping the crypto world more secure and transparent.

Muhammad Ali

Muhammad Ali

Muhammad Ali is an expert on crypto investments. Loving to write about fintech, he joins the team to provide detailed analyses of the hottest crypto news.

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