Crypto Scammers

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.

Chainalysis

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

Nobody enjoys a crypto bear market, but one encouraging trend is that both illegal and legitimate cryptocurrency activity has decreased. Despite this, given the recent increase in money theft, we cannot afford to take our success for granted. The public and private sectors must continue to collaborate and improve their skills.

Scams have decreased significantly as a result of the crypto downturn, according to Kim Grauer, head of research at Chainalysis. It is also due to a number of legal victories over scammers and product solutions that exchanges may use to deter scammers. On August 11, the cryptocurrency market was worth $1.1 trillion, a drop of more than 50% from the $2.35 trillion it had at the start 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.

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