Crypto Fraud Revenues Drop 65% After the Market Meltdown
Revenue derived from cryptocurrency-related crime is down by 65% in the first half of 2022 compared to the corresponding period in 2021
According to blockchain analysis firm Chainalysis, the total revenue for crypto-crime in H1 stands at 1.6bn. dollars In addition, the number of transfers made to illict crypto scams is at its lowest for four years, states the study.
Even the biggest scam of the 2022 so far has only brought in 273m. dollars, which is less than a quarter of the revenue gained from the largest scam in the first half of 2021.
The drop in crypto-crime figures has coincided with a drop in crypto values. However, some forms of crypto-crime have risen in the last 12 months.
The value of stolen or hacked crypto assets has increased from 1.2bn dollars to 1.9bn dollars in the last 12 months, something which Chainalysis attributes to the rise in funds stolen from DeFi protocols and from cross-chain bridges in particular.
According to Eric Jardine, cybercrime research lead at Chainalysis, there is still much more work to be done, despite the apparent drop in overall cyber crime.
“With huge increases in stolen funds, we can’t afford to rest on our laurels. The public and private sectors must continue to work together and hone their ability to fight cryptocurrency-based crime,” said Jardine.
