Crypto Mining

Cryptocurrency Crimes Decrease By 65% This Year

One crypto crime report shows that fraudulent crypto-related earnings have decreased by 65 percent this year compared to the same period last year. The figure mentioned in the report represents a 65 percent decrease in revenue from crypto scams.

Cryptocurrency Crimes Decrease By 65% This Year

The Chainalysis report showed that there was a 65% decrease in cryptocurrency scams with the exit of investors.

A new crypto crime report has shown that fewer people have been caught up in crypto scams since the beginning of this year. The decline coincides with the declining prices of digital assets and the exit of inexperienced crypto investors from the market. The report, published on August 16, showed that crypto fraud earnings to date have amounted to $ 1.6 billion.

Compared to the same period last year, the figure mentioned in the report represents a 65 percent decrease in revenue from crypto scams.

Eric Jardine, the author of the report and a leader in cybercrime research at Chainalysis, said that real investment opportunities are too good to be had during a bullish cycle compared to a bearish cycle. Therefore, he noted that more crypto investors may be caught up in fraud during this period. However, he added that many of those caught up in these scams are new entrants to the Sunday.

Various statistics show that there are usually a lot of new entrants to the crypto market during the bullish cycle. Jardine also said that results may have been affected by the 2021 Finiko and PlusToken scams, in which hackers generated $3.5 billion in revenue.

However, the researcher notes that the most significant fraud revenue this year was $ 273 million. The amount mentioned is that investors cannot access their accounts it was taken from him.

An increase in crypto-based computer hacking has been observed

While there has been a decline in crypto fraud revenues, Jardine pointed out that there has been an increase in crypto-based hacking incidents. Hacking incidents increased by 58.3 percent in July 2022, with a gain of $1.9 billion for that month. However, the amount of money mentioned does not include the $ 190 million fraud incident that occurred on August 1, 2022.

Stating that the rise is mainly due to the huge increase in DeFi applications, which experienced a big boom last year, Jardin said, “Hackers can easily exploit DeFi protocols because they can thoroughly study open source codes and identify weak points." said. However, Jardine added that newer smart languages such as Solidity can help provide better security for DeFi applications, as it makes code auditing possible.

Most of the hackers were from well-trained hacker groups, such as the North Korean-sponsored Lazarus group, the report also said. This group is known to be responsible for about 50 percent of all crypto hacker hacks. The Chainalysis researcher also said that there has been a 43 percent drop in darknet Sunday revenue this year.

Sundays AP The main reason for this was cited as the closure of the Russian dark web (Hydra market) by German law enforcement agencies on April 5, 2022. Pay Sundays are illegal markets for the trade of goods and services, where cryptocurrencies are the primary means of payment.