Data provided by Chainalysis, a blockchain analytics firm, suggests a considerable decline in cryptocurrency crime rates this year. More precisely, the company has revealed a 65% drop in crypto inflows to known illicit entities compared to the previous year, while crypto inflows to risky entities have decreased by 42%.
Considerable Drop in Crypto Crime for 2023
Chainalysis shared its mid-year report on cryptocurrency crime this past Wednesday. In the update, the firm noted a significant 65% overall decrease in crypto-related crime:
The firm’s data clearly shows a significant decrease in cryptocurrency-associated crime for the year.
“Through the end of June, the inflows of cryptocurrency to known illicit entities — excluding inflows to entities that have been sanctioned or subject to special measures — have fallen by 65% compared to the same period in 2022,” Chainalysis expounded.
Furthermore, “Inflows to risky entities (mainly mixers and high-risk exchanges) have dropped by 42%,” and the company further noted that “Inflows to illicit addresses have also reduced in almost all categories.”
However, Chainalysis pointed out that despite the general decline in crypto crime, ransomware is the only category of cryptocurrency-related crime projected to see growth in 2023. During this year, attackers have already extorted an additional $175.8 million compared to the same time frame last year.
Crypto scammers, on the other hand, have seen a notable decrease in their revenues compared to last year. Their total collections for 2023 until June were around $3.3 billion less than in 2022. The total earnings for scammers this year, as Chainalysis highlighted, are slightly over $1 billion:
As of the end of June, crypto scammers have raked in 77% less revenue than they did up to June of 2022. It’s also important to remember that revenue in 2022 had already experienced a substantial drop compared to 2021.
We welcome your thoughts on Chainalysis’ report indicating a significant decrease in crypto crime this year. Please share your views in the comments section below.
Frequently Asked Questions (FAQs) about Crypto Crime Reduction 2023
What is the overall trend in crypto crime in 2023, according to Chainalysis?
Chainalysis reports a significant decrease in crypto crime for the year 2023, with a 65% decline in inflows to known illicit entities and a 42% drop in inflows to risky entities compared to the previous year.
Which type of crypto crime is expected to grow in 2023?
Despite the general decline in crypto crime, ransomware is the only category of cryptocurrency-related crime that is projected to see growth in 2023, according to Chainalysis.
How have crypto scammers been affected in 2023?
Crypto scammers have seen a notable decrease in their revenues compared to the previous year. Their total collections for 2023 until June were approximately $3.3 billion less than in 2022.
What does the data suggest about the inflows to illicit addresses?
Chainalysis data shows that inflows to illicit addresses have also reduced in nearly all categories in 2023.
How did crypto crime in 2022 compare to 2021?
The report notes that there was already a substantial drop in crypto crime revenue in 2022 compared to 2021, and this downward trend has continued into 2023.
More about Crypto Crime Reduction 2023
- Chainalysis 2023 Mid-Year Report
- 2022 Chainalysis Crypto Crime Report
- Overview of Cryptocurrency Crime Trends
- Understanding Crypto Ransomware
- Crypto Scams: A Comprehensive Guide