Cryptocurrency-related crime has significantly decreased by 65% in 2023 compared to the previous year, said blockchain data company Chainalysis. Based on the movement of digital assets to illegal organizations, the data showcases a promising development in combating cryptocurrency fraud. This decline in criminal activity reflects positive progress in the industry.
Addresses connected to ransomware criminals or darknet markets are considered criminal businesses according to Chainalysis. The research highlights a notable 42% decrease in funds flowing into high-risk organizations, including exchangers and mixers commonly associated with money laundering. This decline signifies a positive trend in combating illicit financial activities.
1/ Our Crypto Crime Mid-year Update is out! Here’s what we found:
📉Crime overall is down 65%
💸Scammers took $3.3B less YoY so far in 2023
📈Ransomware is on pace for its’ 2nd-biggest year ever
🧵Follow along for more on these👆key takeaways.https://t.co/Dvi8G6BcUB
— Chainalysis (@chainalysis) July 12, 2023
Although there has been a fall in the volume of legitimate cryptocurrency transactions, Chainalysis reports that the decline in illicit Bitcoin transaction volume is greater. The research highlights the sharp decline in scam revenue, which is normally the largest among cryptocurrency-based crimes.
Through June 2023, cryptocurrency scammers made 77% less money than they did during the same period in 2022.
Given the rising direction of digital asset values throughout the year, this fall is especially significant. Despite the rise in Bitcoin valuations, the normal relationship between rising prices and heightened victim vulnerability has not been able to boost scam earnings.
The Decline in Crypto Crime: Promising Outlook Amidst Ransomware Surge
A good example is Bitcoin, whose price increased from under $17,000 per coin in January to $30,500 at the moment. Due to increased market euphoria and FOMO, such price changes frequently increase the earnings from scams. The startling drop in scam revenue in 2023, however, calls into question this enduring pattern.
The data shows a surge in ransomware assaults, which contrasts with the decline in sams. Attackers have extorted at least $449 million as of June, which puts them on course to have their second-largest year ever.
The results of Chainalysis show progress in the fight against crypto-related criminality, giving the sector a promising future. While cryptocurrency-related crime has declined, the prevalence of ransomware attacks highlights the ongoing need for security measures. Safeguarding individuals and organizations against cyber dangers remains paramount.
Reducing criminal activity is crucial for fostering confidence and facilitating the widespread adoption of digital assets. This becomes even more important as the Bitcoin ecosystem changes.