Maharashtra: Man loses ₹12 lakh as cryptocurrency account hacked

As per the PTI news agency reported an unidentified person allegedly hacked the cryptocurrency account of a 37-year-old man and siphoned off $15,097, worth about ₹12 lakh.

The incident took on November 1, 2022, but the man complained to the police last week, an official from Srinagar police station said. Based on the complaint, the Srinagar police here registered a case on Saturday against an unidentified person under Indian Penal Code Section 420 (cheating) and provisions of the Information Technology Act.

The victim, a resident of Kandivali in neighbouring Mumbai, had come to Thane for some work on November 1 when someone allegedly hacked his crypto account online and siphoned off the amount.

The victim did not give any reason for registering the complaint after two months, the police said, adding they were conducting a probe into the case.

Meanwhile, data from blockchain analytics firm Chainalysis showed that illicit use of cryptocurrencies hit a record $20.1 billion in 2022 as transactions involving companies targeted by US sanctions skyrocketed.

The cryptocurrency market floundered in 2022, as risk appetite diminished and various crypto firms collapsed. Investors were left with large losses and regulators stepped up calls for more consumer protection.

Even as overall crypto transaction volumes fell, the value of crypto transactions related to illicit activity rose for the second year running, Chainalysis said.

Transactions associated with sanctioned entities increased more than 100,000-fold in 2022 and made up 44% of last year’s illicit activity, Chainalysis said.

The volume of stolen crypto funds rose 7% last year, but other illicit crypto transactions including those related to scams, ransomware, terrorism financing and human trafficking, saw volumes fall.

Chainalysis said its $20.1 billion estimate only includes activity recorded on blockchain and excludes “off-chain” crimes such as fraudulent accounting by crypto firms.