CipherTrace: Cryptocurrency fraud exposes traditional banks to compliance issues

According to Cointelegraph, cryptocurrency intelligence company CipherTrace released a report stating that the nature of cryptocurrency fraud is shifting from exchange hacking to Ponzi schemes, pyramid schemes, and export schemes. The value of such crimes has increased significantly by 533%. This means that with the laundering of misappropriated funds, according to the rules of the upcoming Financial Action Task Force (FATF), the risks of the traditional banking system are increasing. CipherTrace Chief Operating Officer Stephen Ryan said that virtual assets are now ubiquitous in bank accounts and payment networks, and banks must find ways to deal with risk. Effectively reducing the risk of cryptocurrencies requires equipping compliance officials with the best tools and intelligence to understand this new asset class.