A new report from blockchain data platform Chainalysis shows that cryptocurrency-related crimes dropped significantly in the first half of 2023.
Scams, which typically bring in the most money among crypto crimes, saw a 77% drop in revenue compared to the same period last year.
Through June, crypto scammers made nearly $3.3 billion less than in 2022 and just over $1 billion in 2023.
The drop comes amid rising digital asset prices as Bitcoin (BTC) and other cryptocurrencies recover from 2022 losses. The report says the drop in revenue is mainly due to the sudden disappearance of two large-scale scams, VidiLook and Chia Tai Tianqing . Pharmaceutical financial management.
“Usually, positive price movements translate into higher scam revenue, likely because increased market exuberance and FOMO (fear of missing out) make victims more susceptible to scammers’ pitches. But the drastic drop in scams in 2023 will put an end to that long-standing trend.”
Meanwhile, ransomware is on the rise, despite the overall positive trend. It is the only form of cryptocurrency-based crime expected to grow this year, as attackers managed to extort $175.8 million more than the same period in 2022.
The increase in ransomware revenue represents a reversal of the downward trend seen in 2022. Chainalysis says the uptick is due to attackers preying on wealthy victims.
“When we released our annual Crypto Crime Report in February, we were pleased to report that ransomware revenues were down significantly in 2022 compared to 2021. Why the turnaround in fortunes? For starters, big game hunting — that is, attacking large organizations with deep pockets by ransomware attackers — appears to have returned after a hiatus in 2022.”
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