A new Chainalysis report on crypto hacks

Chainalysis, the security analysis firm, has published a report comparing the attacks on cryptocurrency exchanges of 2018 and 2019.

A new Chainalysis report on crypto hacks

Problem to solve: security

According to a report by the security analysis firm Chainalysis, the number of hacker attacks against cryptocurrency exchanges during the year 2019 was higher in relation to the number of attacks perpetrated during the year 2018. Although in 2019 it was reported 11 attacks against cryptocurrency exchanges and in 2018 only 6 were reported, the total funds stolen by hackers was much higher during 2018 compared to funds stolen in 2019.

The chart shared by the firm in the report reveals that the funds stolen during 2019 amount to USD 875.5 million, while in 2019 theft was reported worth USD 282.6 million. The results of the graph are a consequence of the increase in investments in security systems and verification of transactions that the main cryptocurrency exchanges have developed. In the report, Chainalysis reported that: "Only 54% of the hacks we observed in 2019 raised more than USD 10 million, compared to all hacks in 2018."

According to him, the exchanges most used by hackers to launder stolen funds are Binance and Huobi. Both exchanges are of the largest platforms in space and have a rigorous KYC protocol for their users, and yet the report indicates that more than 300,000 individual quarantines belonging to both exchanges received Bitcoins from criminal sources during the year 2019. This occurs because the Hackers use OTC (Over The Counter) agents to bypass the KYC requirement.

Chainalysis researchers explained: OTC brokers generally have much lower KYC requirements than the exchanges they operate in ... Many of them take advantage of this laxity and help criminals to launder and withdraw funds, usually by exchanging Bitcoin and other cryptocurrencies. in Tether as a stable intermediate currency before they presumably withdraw cash."