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Lost in the Blockchain: “Crypto Crimes” Fail to Crack the Code
What is the one thing that has remained constant from the 17th to the 21st century? What is the one thing that has caused people to lose their money and hard-earned savings? What is the one thing that makes people lose their rationality and sanity?
The answer: greed. It remains from the first recorded Tulip Mania bubble in the 17th century to the cryptocurrency of the 21st. A study conducted by the Bank for International Settlements states that around 73% of “investors” have lost their money in cryptocurrencies. This goes beyond just losing money, but also includes defrauding others. Squidcoin, Luna, FTX and many others have fooled speculators, motivated by greed resulting from low interest rates.
This speculative mania is not just limited to the West. In India, cryptocurrency-related news stories (people committing suicide due to losses, being duped with the promise of high returns, and being kidnapped due to their cryptocurrency holdings) have recently made repeated appearances in the news. Prime Minister Narendra Modi’s account was also hacked once and contained a tweet in which he claimed that Bitcoin was legal tender. From metropolitan cities to villages in India, cryptocurrencies (and their crimes) have made their way.
The scope of cryptocurrencies goes beyond simply being a speculative asset. It is used to defraud people by issuing initial coin offerings, which is done without any regulation. Some of these schemes are actual Ponzi schemes. Hackers use coins like Monero for ransom-related transactions, leaving no traces. Cryptocurrencies are also used to save black money by converting unaccounted money into digital assets, again without having any record with regulatory agencies. This can later be redeemed in foreign currency. Is it like Hawala? YES.
All these intertwined stories of cryptocurrencies and crimes come to Crypto Crimes: Inside India’s Best-Kept Secret, written by Mitali Mukherjee and published by Harper Collins India. The book begins by exploring cryptocurrencies and their association with India, and then goes on to interview cryptocurrency influencers. It then delves into GainBitcoin’s infamous Ponzi scheme, in which promoters deceived retail investors and used their funds to acquire assets overseas. The main alleged conspirator, Amit Bhardwaj, was, however, caught up in karma, resulting in his death at a young age. His wife, brother and parents are now involved in the legal battle, where the trial itself is the main source of pain and punishment.
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The book recounts how multinational corporations and PSUs fell victim to cyber attacks, where a ransom in cryptocurrency was demanded. It then publishes interviews with crypto entrepreneurs, documents political dilemmas, and ultimately concludes with the fall of FTX. Woven throughout this coverage are numerous stories, surveys and interviews.
“Crypto Crimes: India’s Best Kept Secret” by Mitali Mukherjee
But the book has a major flaw: it gives the impression of a journalist’s diary or some journalistic assignment. Many stories could have been shorter and others presented in a more engaging way. The author’s lack of profound competence is evident in the frequent use of quotes and news, even for basic information, which interrupt the flow of the narrative.
There is no other flaw in the book because the author has no original ideas to propose. This is just a collection of news and quotes presented as a book. Just like newspapers that fill the blank spaces with irrelevant news, given their requirement to have certain pages every day, Mukherjee has filled the news in book format, between two covers. If a reader is following the news, then voilà, you already know all these things he has to say. Mukherjee neither sparks any ideas in the reader’s mind nor provides any ideas on how to be safe. To better understand cryptocurrencies and their crimes, albeit in a global context, “Popping the Crypto Bubble” is a good alternative.
However, given the current scenario, the most urgent need is to strengthen data protection laws. Whenever a data breach occurs, users should be notified that their data has been disclosed and which company is responsible. Secondly, recruit qualified technological experts into the police force, train them and raise awareness. Most traditional police officers are not equipped to understand such cybercrimes and only a minority can handle them, but their numbers are limited. Third, computer literacy is essential and some universities have already introduced courses on this topic. Cybercrimes committed in India are vastly underreported because, often, those affected don’t even realize it.
The writer is an independent columnist who writes about international relations and socio-political affairs. The opinions expressed in the piece above are personal and solely that of the author. They don’t necessarily reflect The opinions of News18.