Crypto Crimes Fall 65% In 2023, But Ransomware Attacks Increase; Chainalysis Report
The crypto industry is known for being subject to prey from various criminals, but new data suggests that the pattern may be shifting in a positive direction. Crypto criminals seem to have been taking it a bit easy so far this year. According to Chainalysis’ latest cryptocurrency crime report, crypto-related crimes have decreased 65% in the first half of 2023 compared to the same period last year.
Report Shows Major Drop in Cryptocurrency Crimes
The significant drop in crypto crimes seems to be largely due to a major decline in scams and dark web market activity. From January through to the end of June, the total value of funds stolen from scam victims plummeted, resulting in a 65% decrease.
Nearly all the categories of crypto crime are down, with total illicit activities taking in $5.22 billion less in 2023 than they did in 2022. The majority of this drop came from crypto scams, especially the VidiLook and Chia Tai exit scams. VidiLook alone scammed investors of over $120 million worth of cryptocurrency.
Crypto companies have also been boosting their security since 2021, as this was evident in the large drop in crypto crime revenue in 2022. This seems to have trickled down into this year, with scammers taking in just over $1.0 billion in the first half, a reduction of nearly $3.3 billion. Proceed from hacks are also down by $1.12 billion from H1 2022, showing crypto exchanges and projects are putting a greater priority on security.
Amount stolen drops by 65% | Source: Chainalysis
With Bitcoin and some altcoins looking to find a renewed bull market, the reduction in crime is obviously good news for investors. On the other hand, ransomware attacks, one of the most damaging types of cybercrimes, have actually spiked over the same time period.
Ransomware Attacks Rise Sharply While Other Crypto Crimes Decline
Ransomware attacks were way up in the first half of 2023, even as most other crypto crimes declined sharply. Ransomware gangs seem to have doubled down on their malicious hacking efforts while the rest of the crypto criminal world took a step back. According to Chainalysis, attackers extorted $175.8 million more than they did within the same period in 2022.
Though security and better policing have helped reduce some crypto crimes, ransomware shows how malicious actors will simply shift strategies to whichever methods prove most profitable. Ransomware attacks have constituted a $449.1 million loss through June. If this rate continues, cybercriminals will extort $898.6 million by the end of the year.
As for the crypto market, the total market cap is sitting at $1.15 trillion, after losing $100 billion in the last day.
Total market cap struggles to hold $1.15 trillion | Source: Crypto Total Market Cap on TradingView.com
Featured image from Analytics Insight, chart from TradingView.com
