Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.
Chainalysis, a blockchain data company, reported a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.
“Scams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that’s the case so far in 2023, total scam revenue has plummeted compared to last year,” the company said.
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.
The firm added: “Usually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers’ pitches. But 2023’s drastic scam decline bucks that long-standing trend.”
Scams are on the decline, but Ransomware is not
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion.
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.
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