Cryptocurrency scammers have had a tough year in 2023, according to a new report from blockchain intelligence firm Chainalysis.
When comparing the first six months of 2023 to the same period in 2018, inflows to “known illicit entities,” a metric of crypto-related crime, have decreased by 65%.
The report also stated that while inflows to purportedly “legitimate services” were down only 28%, inflows to firms considered to be “risky” were down 42%.
“In other words, there has been a market correction, but the volume of illegal cryptocurrency transactions is falling much more than the volume of legal cryptocurrency transactions,” Chainlysis penned.
Most categories of illicit activity are down.
The study continued by stating that inflows to unauthorised addresses had decreased across almost all categories.
Notably, cryptocurrency scams have experienced the biggest drop in revenue, with con artists earning $3.3 billion less so far this year than they did at the same point last year.
According to the research, cryptocurrency scammers have so far this year stolen about $1 billion in earnings.
As per the analysis, this is noteworthy because overall crypto values have grown this year while declining last year, shattering a prior association between higher prices and increasing activity among scammers.
The answer, however, seems to be connected to two specific frauds, specifically the now-defunct VidiLook and Chia Tai large-scale frauds.
Ransomware is on the rise.
However, ransomware is one illegal activity category that has increased this year.
According to the Chainalysis analysis, ransomware assaults have so far this year generated $175.8 million more than they did at the same time last year, reversing a decreasing trend.
In closing, Chainalysis stated that cyber security in 2023 is “off to a good start” and that “crypto crime as a whole is in sharp decline.”
According to the Chainalysis analysis, this demonstrates that the efforts of law enforcement organisations as well as the cryptocurrency industry have paid off and stopped hacks, which have been a major problem in crypto in the past.