Book Review | Lost in the Blockchain: ‘Crypto Crimes’ Fails to Decipher the Code

What is the one thing that has remained constant from the 17^th century to the 21^st 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 in the first recorded bubble of Tulip Mania in the 17^th century to crypto ‘currency’ in the 21^st. A study conducted by the Bank of International Settlements says that around 73 per cent of ‘investors’ have lost their money in crypto. This goes beyond just losing money, this includes defrauding others too. Squidcoin, Luna, FTX and many others have fooled speculators-cum-suckers, motivated by the greed arising from low interest rates.

This mania of speculation is not limited to the West only. In India, crypto-related news—people committing suicide because of loss, being conned on the promise of high returns, and getting kidnapped due to their crypto holdings—have lately made their repeated appearances in the news. Prime Minister Narendra Modi’s account was also once hacked, and it put a tweet claiming that Bitcoin was a legal tender. From metro cities to villages of India, crypto (and its crimes) has made its way.

The scope of crypto goes beyond just being a speculative asset. It is used to defraud people by issuing Initial Coin Offerings, which happens sans any regulatory sight. Some of these schemes are outright Ponzi schemes. Hackers use coins like Monero for ransom-related transactions, without leaving any traces. Cryptos are also used to save black money by converting unaccounted cash into digital assets, again without having any record with regulatory agencies. This can be later redeemed in foreign currency. Is this like Hawala? Yes.

All these interleaved stories of crypto and crimes make their way to Crypto Crimes: Inside India’s Best-Kept Secret, written by Mitali Mukherjee and published by Harper Collins India. The book begins by exploring crypto and its association with India, and then goes on to interview crypto influencers. It then delves into the infamous Ponzi scheme of GainBitcoin, where promotors fooled retail investors and used their funds to acquire assets overseas. The main alleged conspirator, Amit Bhardwaj, was, however, caught by karma, resulting in his death at a young age. His wife, brother and parents are now caught up in the legal battle, where the process itself is the main source of pain and punishment.

The book recounts how MNCs and PSUs fell victim to cyberattacks, where ransom was demanded in cryptocurrency. It then proceeds to publish interviews with crypto entrepreneurs, document policy dilemmas, and finally, end with the fall of FTX. Woven throughout this coverage are numerous stories, surveys, and interviews.

But the book has a major flaw: it gives a feel of a reporter’s diary or some journalistic assignment. Many stories could have been kept short, and others presented in a more engaging manner. The author’s lack of deep expertise is evident in the frequent reliance on quotes and news reports, even for basic information, which disrupts the flow of the narrative.

There is no other flaw in the book for the author doesn’t have any original ideas to propose. This is just a compilation of news reports and quotations presented as a book. Just like newspapers that fill the blank spaces with irrelevant news items, given their obligation to have certain pages every day, Mukherjee has filled news in a book format, between two covers. If a reader is tracking the news, then voila, you already know all these things that she has to say. Mukherjee neither ignites any ideas in the reader’s mind nor gives any ideas on how to be safe. To understand crypto and its crimes in a better way, albeit with 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 informed that their data has been leaked and which company is responsible. Second, recruit skilled tech experts into the police force, train them, and raise their awareness. Most traditional police officers are not equipped to understand such cybercrimes, and only a minority can handle these crimes, but their numbers are limited. Third, cyber literacy is essential, and some universities have already introduced courses on this subject. India’s cybercrimes are massively underreported because, often, those who are affected do not even realise it.

The writer is an independent columnist who writes on international relations, and socio-political affairs. Views expressed in the above piece are personal and solely that of the author. They do not necessarily reflect News18’s views.