Crypto Crimes Down 15% So far in 2022: Report
According to Chainalysis, the percentage of illegal cryptocurrency transactions has decreased by 15%.
According to a new analysis published by the blockchain intelligence company Chainalysis, the volume of illegal activities involving cryptocurrencies has decreased by 15% in 2022. In comparison, the number of legitimate transactions has decreased by 36%.
According to the research published by the company,
“If we dive into particular forms of cryptocurrency-based crime, we find that some have actually climbed in 2022, while others have decreased more than the industry overall.”
Chainalysis estimates that total scam revenue for 2022 will be 65% lower than it was at the end of July 2021 and will sit at $1.6 billion. The company attributes this decrease in revenue to the general decline in the value of cryptocurrencies.
The company claims that “from January 2022, scam revenue has plummeted more or less in step with the pricing of Bitcoin” (at that time, fraud revenue has decreased). The total number of individuals who have fallen victim to scams so far in 2022 is at its lowest point in the last four years.
Crypto Scams are Less Appealing Due to Bearish Crypto Market
According to Chainalysis, this development shows that fewer individuals are falling for bitcoin scams. This is because cryptocurrency scams are less appealing now that values are plummeting in the bear market.
The fact that there has not yet been a single large fraud in 2022, as opposed to previous years, such as when the crooks behind PlusToken made off with almost $2 billion in 2019 or when Finiko stole $1.5 billion in 2021, is another aspect that the research cites as contributing to the reduction.
Chainalysis found that as of July 2022, hacks were still responsible for the theft of $1.9 billion worth of cryptocurrency, although the number of scams may have decreased. These include the hack of the Nomad Token Bridge, which resulted in a loss of $190 million, or the theft of $5 million from Solana wallets earlier this month. This is compared to the loss of just under $1.2 billion during the same period in the previous year.
According to the company, “we shouldn’t expect theft to diminish depending on fluctuations in the bitcoin market because scamming does.” As long as the crypto assets housed in DeFi protocol pools and other services have value and are susceptible to theft, unscrupulous actors will continue to try to take them.
Chainalysis, which began operations in 2014, develops software solutions that may detect and prevent crimes involving cryptocurrencies on behalf of government agencies, financial institutions, and corporations.