Crypto crime is down 65% in 2023, though ransomware is still prevalent

Jul. 12, 2023

By Assad Jafri

Illicit inflows are down across every category of crypto-crime, except ransomware, which is already trailing numbers seen during the 2021 bull run.

Crypto-related crime is down a significant degree in 2023 compared to the preceding two years despite ransomware activity spiking to unprecedented highs, according to Chainalysis research.

The Blockchain research firm’s data shows that cryptocurrency inflows to illicit services fell 65% on an annual basis, while inflows to risky services like mixers and high-risk crypto exchanges were down 42% year over year.

The data does not include entities that have been sanctioned or those subject to special measures.

Meanwhile, inflows to legitimate services are only down 28% year over year, which means that illicit transactions are falling at a significantly faster rate beyond just the market drawback, according to Chainalysis.

Ransomware

Based on the data, illicit inflows are down across every category of crypto-crime, except ransomware, which is already trailing numbers seen during the 2021 bull run.

Ransomware attackers are expected to steal roughly $898.6 million by the end of 2023 at the current pace of attacks. Comparatively, the crypto industry lost a total of $939.9 million in ransomware attacks in 2021 and less than $500 million in 2022.

The firm attributes the uptick mainly to what it calls “big game hunting,” a term used to refer to ransomware attacks against large entities with substantial financial resources.

To read the entire article...Click Here!