Drop in Illicit Crypto Activity – Scam Revenue 65% Lower than Last Year – Featured Bitcoin News


Chainalysis found illicit crypto volumes were down this year, with full scam revenue standing at $1.6 billion, down 65% from the end of July last year. . “These numbers suggest that fewer individuals than ever are falling for cryptocurrency scams,” the blockchain news analytics agency wrote.

Knowledge Shows Illicit Crypto Volumes Are Down

Blockchain data analytics agency Chainalysis released its mid-year crypto crime update on Tuesday titled “Illicit Exercise Falls Along with the Rest of the Market, with a Few Notable Exceptions.”

The agency wrote this total:

Illicit volumes are down only 15% 12 months over 12 months, compared to 36% for respectable volumes.

In particular, “total scam revenue for 2022 currently sits at $1.6 billion, down 65% from the end of July in 2021, and this decline appears to be related to lower prices in various currencies”, The famous on-chain analysis.

Additionally, “the cumulative number of individual transfers to scams so far in 2022 is the lowest in four years,” the agency added.

Detailed on-chain analysis:

These numbers suggest that fewer individuals than ever are falling for cryptocurrency scams. One reason for this could be that with falling asset costs, cryptocurrency scams…are much less attractive to potential victims.

The agency noted that no recognized scams in 2022 approached the extent of Plustoken or Finiko. The former brought in more than $2 billion to victims in 2019, while the latter brought in over $1.5 billion in 2021.

Additionally, darknet market revenues have dropped significantly this year and are currently down 43% from where they were in July 2021.

One space where illicit exercise is increasing in 2022 is hacking and stolen funds. The blockchain analytics agency described:

Since July 2022, $1.9 billion worth of cryptocurrency has been stolen in vendor hacks, compared to just under $1.2 billion at the same level in 2021.

“This pattern does not appear to be reversing anytime soon, with a $190 million hack of the Nomad cross-chain bridge and a $5 million hack of a number of Solana wallets already occurring over the past the first week of August,” Chainalysis added. “Much of this can be attributed to the nice increase in funds stolen from defi [decentralized finance] protocols, a pattern that began in 2021.”

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

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Kevin Helms

Austrian economics expert Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His activities focus on Bitcoin security, open-source techniques, community outcomes, and the intersection between economics and cryptography.

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