The year 2023 marked a period of cryptocurrency recovery as the industry rebounded from scandals and price declines in 2022. How did this affect crypto crimes? Chainalysis provided a detailed report.
How much was stolen? (spoiler: less than 0.5%)
In 2023, illicit activity in the crypto market accounted for 0.34% of the total volume of crypto transactions. It includes funds sent to illegal addresses and funds stolen due to crypto hacks. In 2022, the figure was higher at 0.42%.
What are they stealing?
Until 2021, Bitcoin led the way in crypto crimes, likely due to its high liquidity. However, over the past two years, the landscape has shifted, with most illicit transactions now involving stablecoins. This change is linked to the recent increase in the share of stablecoins in overall crypto activity, including legitimate transactions.
How are they stealing?
Profits from crypto fraud and hacking attacks saw significant decreases in 2023, with the total volume of illicit gains from each falling by 29.2% and 54.3%, respectively. Crypto fraudsters are now targeting individuals, involving them in fraudulent investment schemes.
The number of DeFi hacks has also dropped significantly. This could indicate that DeFi protocols are improving their security measures. According to researchers, hacking attacks are much harder to conceal because observers can quickly detect leaks from a service or protocol.
We'd like to remind you about internet and crypto market security. The responsibility for your funds lies solely with you. Do not disclose your seed phrase to anyone. Stay vigilant!
Read also: SAFETY IN CRYPTO PROJECTS: EVALUATE YOURSELF
