Today many benefits can be obtained from the proper use and management of digital currencies. Still, there will always be those who, with the management of anonymous accounts, premeditatedly and treacherously manage to evade the authorities with the development of illicit activities. Today, most crypto traders and investors are using platforms like www.bitcoin-profitapp.com. You can also try this platform, as it is a trusted one by many investors.
When cryptocurrencies and the blockchain were created beyond the ability to obtain net enrichment from financial investments with crypto assets, it was to create an alternative economic system that could get countries out of the crisis and become the future of Fiat money.
Notorious Bitcoin thefts
Despite the security and anonymity protocols that Bitcoin has, making it one of the leading cryptocurrencies, due to its privacy and protection features against possible theft of cryptocurrencies, it does not make it inviolable.
In the history of cryptocurrencies, we are facing a trial-and-error scenario, which has often cost many users millions in losses and, in turn, millions in gains for others.
It is interesting to evaluate the different perspectives regarding financial security aspects; banking and financial entities have designed software and platforms to guarantee their capital security. But, even so, they have been violated.
It shows us that everyone is exposed to any situation of asset theft despite significant efforts to manage security policies and criteria that, in many cases, could be considered inviolable.
Some of the best-known and notorious cases of the loss of cryptocurrencies are the following:
- The case of Mt Gox: Mt Gox is a renowned Exchange that emerged as the first cryptocurrency exchange platform, becoming a milestone in digital currency purchase and sale negotiations.
After a few years of its creation, around 25,000 BTC were stolen, which undoubtedly created alarm among users; without being able to determine who the author of the theft was, the platform was affected and later became the victim of a much more significant theft of 774,000 BTC which is still under investigation.
- The case of Skill Road could be considered one of the most controversial due to the commercial activity to which said the company was dedicated.
Skill Road was known as a company for selling various illegal items, be they weapons, drugs, and digital content, which undoubtedly became an illicit business where the payment for the products was made with cryptocurrencies.
The owners of this digital company did not expect the FBI to be behind them and, through an arduous investigation, achieved the definitive closure of this illegal market.
How to increase the security of crypto wallets
Cryptocurrencies, being digital financial instruments that cannot be touched, make them vulnerable to possible loss, although if you have the tools to keep digital assets safe, then there is nothing to worry about anymore if you take care of them.
The main suggestion for people or investors who do crypto trading is to protect their assets in exchanges with regulations and controls such as KYC and AML.
Another option is using offline wallets, a cold storage device, always protecting the keys that are supposed to be only under the protection and control of the user.
713 tokens stolen by Harmon from US authorities
The 713 tokens that were stolen remotely were found in a device that the North American authorities had seized; the value to date of these digital assets exceeds 5 million dollars, a reasonably high amount if it is about earnings from cryptocurrencies.
These cryptocurrencies were already part of a case against Larry Harmon, who pleaded guilty to carrying out illicit transactions such as money laundering, where he reached 311 million dollars on the date he was arrested.
Subsequently, the loss of those stored tokens was the responsibility of Larry’s brother, Gary. He is currently in federal prison, thanks to the evidence obtained by the FBI in its investigation.
In this case, it is even verified that judicial processes can be carried out successfully even though the blockchain is completely decentralized; it stores the information in such a way that it cannot be modified or altered once it has been processed.
Illegal transactions undoubtedly cloud the positive outlook and benefits that the digital financial market can offer. That is where the authorities activate their alarms to create the necessary laws to regulate cryptographic transactions and their use in the traditional financial market.