This Surging Cryptocurrency Just Overtook Dogecoin

[KILLSHOT]

Eastern Europe has become a hotbed for cryptocurrency scams, according to a new analysis, with addresses in the region having a high rate of exposure to illicit transactions — second to only Africa. 

A new report from Chainalysis, a blockchain forensics firm, mapped out the crypto crime landscape of Eastern Europe over the past year. Notably, a little-known billion dollar Ponzi scheme called Finiko accounted for more than half of funds in the region sent to scam addresses.

Indeed, crypto scams emanating from the region's 290 million strong population are only dwarfed by the continent of Africa, which has a far larger estimated population — 1.3 billion people. According to the report, illegal crypto activity made up 0.5 percent of total crypto value, or more than $400 million sent and received from Eastern Europe.

With a market capitalization already at $2 trillion, half a percent of all the region’s crypto transactions is concerning to say the least, said Tyler Moffitt, a senior security analyst with Canada-based information security company, OpenText.

“Even if the market continues to rise every four or five years, illicit crypto flows should only keep growing, especially in places like Eastern Europe where cybercrime is abundant,” he added.

And the stakes are higher as scams proliferate. In the past year, the Russia-based Ponzi scheme and exit scam called Finiko dominated Eastern Europe’s illicit crypto flows. According to Chainanalysis' report, more than 60% of all cryptocurrency sent from the region went to addresses attributed to “TheFiniko.com.”

An exit scam is a crypto-based trap whereby promoters (or founders) of an online business vanish without returning investor holdings. Well known perpetrators include the high-yield investment program and cryptocurrency, Bitconnect; and Canada-based bitcoin exchange, Quadriga, which lost $215 million of customer funds after its founder mysteriously died on his honeymoon.

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