Blockchain analysis company, Chainalysis, recently published the first ever Geography of Cryptocurrency Report. This report showcases how patterns of crypto usage vary across the world. The report includes data relating to scams in the African region. Chainalysis provides data and analysis to government agencies, exchanges, and financial institutions across 40 countries.
The data states that scams make up a lower share of illicit activity in Africa, when compared to other regions. What Chainalysis regards as illicit activity makes up about 1.4% of all African crypto activity by volume, which is about average compared to other regions in the report. Chainalysis mentions a number of scams in the African region, including the highly suspicious Mirror Trading International (MTI).
The data suggests MyMTIClub has grown to become the dominant scam in the African region. Chainalysis claims that MTI defraud victims by claiming they can grow customers’ Bitcoin deposits through algorithmic trading.
Value sent from the African region to MTI has increased explosively during the beginning of 2020, from about $1 million in January 2020 to about $8 million in June 2020. These figures suggest that the value sent from Africa to MTI would continue to increase from the highs seen in June 2020.
The informative Chainalysis report also outlines key activity levels across the globe, and further highlights the growing global nature of cryptocurrency. In particular, the growth of cryptocurrency activity in developing regions, and in Africa, is not to be ignored. The Chainalysis report outlines that cryptocurrency scams aren’t as prevalent in Africa as they are in other regions, but that’s no reason to be less cautious.
Feature image by Crypto Moon from flickr
Great article – it’s incredible that the MTI scam has kept going as long as it has! Especially given the top dogs’ history of involvement in past scams/ponzis – BTC Global, MMM, Kipi etc.