The Stats in This Crypto Crime Report Might Give You Goosebumps

The Stats in This Crypto Crime Report Might Give You Goosebumps

Total revenue from crypto scams to date currently stands at $1.6 billion, as recorded in a recent Chainalysis report.

This implies a decrease of almost 65% from the previous year period, which seems to be related to the drop in cryptocurrency prices.

This is also reflected in the volume of transactions between cryptocurrencies.

As it is, crypto crime appears to be more resilient compared to price declines across all assets.

Illicit volumes are down just 15% year-over-year, compared to a 36% drop in legitimate volumes.

Source: Chainalysis

Any link to prices?

It is no surprise that 2022 has been a tumultuous year for crypto assets as they battled hard against the bear market.

The Chainalysis report further shares insights into cybercrime trends in mid-2022 as crypto markets tackle the bear market.

Bitcoin [BTC] prices currently hover between $22,000 and $24,500 after starting the year around $48,000.

Since January 2022, scam revenue has fallen along with Bitcoin prices.

Fewer people were swept up in crypto scams due to the exit of a large number of inexperienced traders during the bear market. In this regard, the report stated,

“It’s not just about the drop in scam revenue: the cumulative number of individual transfers to scams so far in 2022 is the lowest in four years.”

Source: Chainalysis

However, there is one area of ​​crypto crime that showed a tremendous increase during the review period.

As the report puts it, as of July 2022, more than $1.9 billion in crypto was stolen in hacks.

This is about $700 million compared to the same point in 2021.

There is little expectation that this trend will end soon after the recent massive attacks in the crypto space.

Two recent hacks into the Nomad cross-chain bridge and Solana wallet generated a collective windfall of just under $200 million in August.

While these are included in the data table, they represent the resistance of cybercrime to decline.

Source: Chainalysis

The report further alarmed the crypto community by saying that these trends can be revisited after one or two big scams.

This means that the next report could signal a change in the trend of declining scam revenue than what we currently see.

Crime has surely gone down, but there is a lot of work to be done in the crypto space.

However, the bear market may have been a blessing in disguise as it drove out inexperienced traders who, again, may have paved the way for safer trading in the space.

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