Illegal Crypto Activity Drops – Scam Income 65% Lower Than Last Year – Bitcoin News Highlights

Illegal Crypto Activity Drops – Scam Income 65% Lower Than Last Year – Bitcoin News Highlights

Chainalysis found that the volume of illegal cryptocurrencies has declined this year, with total fraud revenue at $1.6 billion, down 65% from the end of July last year. “Those numbers suggest that fewer people than ever are falling for cryptocurrency scams,” the blockchain data analytics firm wrote.

The data shows that illicit crypto volumes have decreased

Blockchain data analytics firm Chainalysis released a mid-year crypto crime update on Tuesday titled “Illegitimate activity falls with the rest of the market, with some notable exceptions.”

In total, the firm wrote:

Illicit volumes have decreased by just 15% year-on-year, compared to 36% for legitimate volumes.

Specifically, “Total fraud revenue for 2022 is currently $1.6 billion, 65% lower than by the end of July 2021, and this decline appears to be related to the decline in prices across currencies,” notes Chainalysis.

Furthermore, “the cumulative number of individual fraudulent transfers so far in 2022 is the lowest in four years,” the company added.

Detailed chain analysis:

These numbers suggest that fewer people than ever are falling for cryptocurrency scams. One reason for this could be that with falling asset prices, cryptocurrency scams are… less enticing to potential victims.

The firm pointed out that none of the scams discovered in 2022 came close to the level of Plustoken or Finiko. The former earned over $2 billion from victims in 2019, while the latter earned over $1.5 billion in 2021.

In addition, darknet market revenue has decreased significantly this year and is currently 43% lower than in July 2021.

An area where illegal activity is increasing in 2022 is hacking and stolen funds. The blockchain analytics firm described:

By July 2022, $1.9 billion worth of cryptocurrencies were stolen by hacking services, compared to just under $1.2 billion at the same point in 2021.

“This trend doesn’t seem to be reversing any time soon, with a $190 million hack of cross-chain bridge Nomad and a $5 million hack of several Solana wallets already in the first week of August,” adds Chainalysis. “Much of this can be attributed to the staggering increase in funds stolen from defi [decentralized finance] protocols, a trend that started in 2021.

What do you think of the Chainalysis findings? Let us know in the comments section below.

Illegal Crypto Activity Drops – Scam Income 65% Lower Than Last Year – Bitcoin News Highlights

Kevin Helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in bitcoin security, open-source systems, network effects, and the intersection between economics and cryptography.




Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by the use of or reliance on any content, goods or services mentioned in this article.

(function(d, s, id) {
var js, fjs = d.getElementsByTagName(s)[0];
if (d.getElementById(id)) return;
js = d.createElement(s); js.id = id;
js.src=”https://connect.facebook.net/en_US/sdk.js#xfbml=1&version=v3.2″;
fjs.parentNode.insertBefore(js, fjs);
}(document, ‘script’, ‘facebook-jssdk’));



Source link

Leave a Reply