Last Updated on 3 months by newseditor
After a turbulent 2022, digital assets like Bitcoin are recovering in 2023, with values up over 80% in the year as of June 30. While this is amazing news, there is more. According to a report by Chainalysis, there has been a notable decrease in crypto-related criminal activities throughout this year. In a blog post by Chainalysis, they revealed that scams, known as the most profitable type of crypto-related criminal activity, saw a notable decrease. Based on the data, there was a substantial decrease of 77% when compared to the time leading up to June 2022.
Chainalysis has also brought our attention to the fact that the decrease in crypto scams earnings in 2023 is quite remarkable. This is especially so when we consider the context of increasing crypto values, particularly for Bitcoin. Typically, when prices go up, scam revenue also goes up. This is because of the heightened market enthusiasm and fear of missing out (FOMO) that makes people more susceptible to crypto scams. Contrary to the usual pattern of things, the post revealed that there had been a notable decrease in scams throughout the year 2023.
As reported by Chainalysis, the fall in scam revenue is due to the disappearance of one of the biggest scams, which is VidiLook. Since its exit scam in mid-April, the investment scam that managed to deceive victims out of $120 million in just a few months, there has been no new replacement by any other scams.
This year has seen a 42% decrease in crypto transfers to entities deemed “risky,” such as mixers and high-risk exchanges. On the other hand, the volume of crypto transfers to “legitimate” entities has only fallen by 28%. In addition, the majority of inflows, amounting to nearly $3 trillion, consisted of legitimate transfers. In contrast, risky transfers accounted for approximately $75 billion, while illicit transfers accounted for approximately $2.5 billion.
Ransomware Crime Surge in Crypto
Contrary to scams, the return of ransomware crime seems to be in full force once again, following a temporary decline in 2022. These extortionists were able to extract a staggering $449.1 million from their victims during the period spanning from January to June.
A report by Chainlysis last year suggested that improved security measures implemented by major institutions, along with the enforcement of sanctions against cashout services used by ransomware groups, were contributing to a decrease in the frequency of ransom payments. Still, the company believes that criminals are adapting by escalating the scale of ransom demands, thereby maximizing their gains from those they successfully target.
The recent Chainalysis report sheds light on the changing landscape of crypto-related criminal activities in 2023. Although there has been a noticeable decrease in crypto scams, which indicates positive advancement, the increase in ransomware crimes is concerning.