According to Chainalysis, cryptocurrency flows to known criminal organizations fell 65% in the first half of 2023 compared to the same period in 2022, but ransomware is expected to be the biggest year yet.
The company analyzed blockchain activity in the first six months of 2023 and summarized its findings. Midyear update on cryptocrime.
Trading volumes to riskier entities, such as cryptocurrency mixers and high-risk exchanges, were also found to be down significantly, down 42% year-over-year (YoY). However, access to legitimate services dropped by just 28%.
“In other words, despite the market rebound, illicit cryptocurrency trading volumes are much lower than legitimate cryptocurrency trading volumes,” Chainalysis explained.
Read more about crypto crime: Nearly $9 billion will be laundered in crypto in 2021
The decline in cryptocurrency-based fraud during this period was largely responsible for the downturn in criminal activity. Cryptocurrency scammer revenue fell by nearly $3.3 billion (77%) year-on-year, bringing his total to just over $1 billion in the first half of 2023.
Chainalysis argued that this was notable because it happened at a time when cryptocurrency prices were rising. This sharp drop can be attributed to the demise of two of his massive campaigns, VidiLook and Chia Tai Tianqing Pharmaceutical Financial Management.
Both investment scam operators appear to have ditched classic exit scams, leaving victims elated and dry, the report notes.
Unfortunately, ransomware is the only cryptocurrency-based crime expected to rise in 2023. Attackers have already threatened him with $176 million more than in the same period in 2022, a welcome reversal of the downward trend in 2022.
“In fact, ransomware attackers are on track for their second-highest year ever, extorting at least $449 million by June,” Chainalysis said. “If this pace continues, the ransomware attacker will extort her $899 million from his victims in 2023, followed by his $940 million in 2021. .”
The report warns that the increase in criminal proceeds may be due to a resurgence in big game hunting and an increase in the number of successful small-scale attacks.
