Hacking Costs Crypto Investors losses worth $5.6 Billion

The Federal Bureau of Investigation (FBI) estimated that cryptocurrency investors and traders lost $5.6 billion in 2023, most of which were due to hacking and fraud.

In January 2024, the US Securities and Exchange Commission approved the first Bitcoin exchange-traded funds (ETFs) to support cryptocurrency advocates, in a move described as historic.

At the time, consumer and investor groups argued that making the product available through ETFs would encourage individual investors to move money into a sector known for frequent scandals and massive price volatility. Dennis Kelleher, president of Better Markets, said the approval was “a historic mistake that will not only unleash cryptocurrency predators on tens of millions of investors and retirees, but also potentially undermine financial stability.” For his part, SEC Chairman Gary Gensler told investors to remain cautious about the myriad risks associated with Bitcoin and products whose value is tied to cryptocurrencies.