Chainalysis published a report on a Mid-Year update on crypto crimes by scammers on August 16. At the same time, overall illegal activity has decreased in line with the market’s general downward trend; the average masks significant increases in specific event categories, according to the report.
Based on an analysis of blockchain data, the report claimed that fewer people are being duped out of their cryptocurrencies. Furthermore, scam income has decreased since January 2022, roughly paralleling the price of Bitcoin.
Cryptocurrency Hacks Losses
Crypto hacking losses increased by more than 60% to $1.9 billion in the first seven months of 2022, owing to increased money taken via decentralized finance (DeFi) protocols. Over the same period last year, $1.2 billion was stolen through hacking.
DeFi apps are financial platforms that enable cryptocurrency lending outside of traditional banks, with many of them based on the Ethereum blockchain.
Given the $190 million attack on the Nomad cross-chain bridge and the $5 million hack of numerous Solana wallets in the first week of August, Chainalysis believes the trend is unlikely to change anytime soon.
As the global economic crisis continues, revenue from crypto scams for 2022 fell by 65% this year to $1.6 billion. According to these statistics, crypto scams are affecting fewer people than ever before. It could be because, with asset prices falling, crypto scams are less appealing to potential victims.
Scammers Lose as the Market Declines
No one likes a crypto bear market, but one positive sign is that both illegal and legal cryptocurrency activities have dropped. However, with the recent rise in money theft, we can’t assume we’re safe. The public and private sectors need to keep working together and enhancing their efforts.
Scams have dropped sharply because of the crypto market decline, says Kim Grauer, head of research at Chainalysis. This is also due to several legal wins against scammers and tools that exchanges can use to prevent scams. On August 11, the value of the cryptocurrency market was $1.1 trillion, which is a decrease of over 50% from the $2.35 trillion it was at the beginning of the year.
Bitcoin’s price has dropped nearly 48% this year, and it has been ranging between $20,000 and $24,000 in recent months. Since January 2022, the revenue from scams has decreased in tandem with the price of bitcoin. Aside from a decrease in scam revenues, 2022 saw the fewest total individual transfers to scams in the previous four years.
According to these figures, fewer people are becoming victims of cryptocurrency scams than ever, and the asset value decline may make cryptocurrency scams less appealing to potential victims. These schemes frequently offer passive cryptocurrency investing opportunities with high promised returns.
Relevant news:
- NFT Scams and Phishing Attacks – Goblin Town Targeted
- The Crypto Scams Are Coming – British Army Twitter and YouTube Accounts Hacked
Tamadoge - The Play to Earn Dogecoin
- '10x - 50x Potential' - CNBC Report
- Deflationary, Low Supply - 2 Billion
- Listed on Bybit, OKX, Bitmart, LBank, MEXC, Uniswap
- Move to Earn, Metaverse Integration on Roadmap
- NFT Doge Pets - Potential for Mass Adoption