Cryptocurrencies worth $ 9.8 billion have been stolen since 2017, according to KPMG

KPMG, one of the largest audit firmscompanies of the world, estimated the amount of cryptocurrency theft over the past three years at $ 9.8 billion, which, according to analysts, makes this market too risky for institutional investors.

According to KPMG research, the majority ofThefts were caused by low level of security systems and poorly written program code. The consultancy notes that as institutional investors begin to include Bitcoin and Ethereum in their portfolios, these coins become important and require storage.appropriate level.  

Increased demand for such services has led tothat financial giants such as Fidelity and ICE launched their own custodial services, starting to compete with the offers of leading crypto companies. KPMG believes that with the proper level of security, such projects have a good chance of becoming highly profitable, since this area is just starting to develop.

According to the report's authors, problems withsecurity are the main repulsive factor for large players, since they will not take risks and acquire crypto-assets without proper guarantees of their safety. The situation is aggravated by how easy it is for fraudsters to commit theft and then anonymously use the stolen funds.

The company's researchers believe that custodial services should further improve storage methods, taking into account the unique characteristics of each crypto asset.

One of the latest examples of the vulnerability of this sector is the freezing of the IOTA network, caused by numerous thefts of tokens from Trinity wallets.

</p>