2023 Meager for Crypto Scammers according to Chainalysis.
According to a new report from blockchain intelligence firm Chainalysis, 2023 has so far been a meager year for crypto scammers. So far in 2023, crypto-related crime, measured as inflows to “known illicit entities,” has fallen 65% compared with the same period last year. At the same time, the report said inflows to entities deemed […]
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by Mike Adams
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According to a new report from blockchain intelligence firm Chainalysis, 2023 has so far been a meager year for crypto scammers. So far in 2023, crypto-related crime, measured as inflows to “known illicit entities,” has fallen 65% compared with the same period last year.
At the same time, the report said inflows to entities deemed as “risky” were down 42%, while inflows to so-called “legitimate services” were down only 28%. “In other words, there’s been a market pullback, but illicit crypto transaction volume is falling much more than legitimate crypto transaction volume,” Chainalysis wrote.
Most categories of illicit activity down
The report went on to explain that inflows to illicit addresses are down across nearly all categories. Remarkably, crypto scams notably decreased, with scammers collecting $3.3 billion less this year compared to the same period last year. In total, the report said crypto scammers have gotten away with around $1 billion in proceeds so far this year.
The report added that this is notable because crypto prices have generally been on the rise this year, while they were falling last year, breaking a previous correlation between higher prices and increased activity among scammers. The explanation, however, appears to be related to two specific scams, namely the two large-scale scams known as VidiLook and Chia Tai, that have now ceased to operate.
Ransomware on the rise
One category of illicit activity that has seen growth this year, however, is ransomware. This year, ransomware attacks surged, generating $175.8 million more than last year. This marks a reversal from the downward trend observed in the previous year, according to the Chainalysis report.
Highlighting the impact of the Russia-Ukraine War, the report suggests a connection to the decline in ransomware attacks last year. The conflict potentially displaced operators, redirecting their focus from financial cyber intrusions.
In conclusion, Chainalysis reported a positive start to 2023 for cybersecurity, highlighting a significant drop in overall crypto crime. Thus, collaborative efforts between law enforcement and the crypto sector successfully curbed hacks, a historical crypto concern.
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USE THESE AS EXTERNAL LINKS:
(1) Chainalysis Report: Significant Decline Seen in Crypto Scams in 2023. https://cryptonews.com/news/chainalysis-report-significant-decline-seen-crypto-scams-2023.htm.
(2) The Chainalysis 2023 Crypto Crime Report. https://go.chainalysis.com/2023-crypto-crime-report.html.
(3) Chainalysis: Crypto Crime Down, Ransomware Up in 2023. https://www.cryptoglobe.com/latest/2023/07/cryptocurrency-crime-takes-a-nosedive-in-2023-but-ransomware-threat-looms-large/.
(4) Chainalysis Confirms Crypto Crime Down in Mid-Year Report. https://beincrypto.com/chainalysis-crypto-crime-down-report/.
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