CDS Crypto News Crypto Criminal Activity Drops by 29% According to Latest Chainalysis Findings in 2023
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Crypto Criminal Activity Drops by 29% According to Latest Chainalysis Findings in 2023

The illicit cryptocurrency landscape underwent a significant shift following the conviction of Sam Bankman-Fried, with FTX taking the spotlight in reported illegal activities.

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Crypto Criminal Activity Drops By 29% According To Latest Chainalysis Findings In 2023

Crypto News- In 2023, the crypto world experienced a significant decline in scams, with stolen funds dropping by nearly a third compared to 2022, according to a Chainalysis report set to be fully released in February. The report reveals that illicit revenue overall decreased by over 54%.

Chainalysis disclosed that stolen cryptocurrency represented 0.34% of total on-chain transactions in 2023, amounting to $24.2 billion, compared to 0.42% ($39.6 billion) in 2022. The 2023 total includes funds sent to addresses identified as ‘illicit’ and those stolen in hacks. Notably, the 2022 amount was inflated due to the inclusion of $8.7 billion in FTX creditor claims.

Crypto Criminal Activity Drops by 29% According to Latest Chainalysis Findings in 2023

FTX founder Sam Bankman-Fried’s conviction led to the inclusion of FTX in the report. Notable incidents include a credit market hack on the Optimism Network and Canadian citizens losing over $22.5 million in crypto scams.

Crypto Landscape in 2023: Decline in Scams, Rise of Stablecoins, and Evolving Transnational Crime

Chainalysis pointed out a shift in crypto criminal behavior, highlighting that stablecoins have surpassed Bitcoin in popularity among scammers. The report notes stablecoins’ majority share in illicit transaction volume, although this doesn’t apply uniformly to all forms of crypto-related crime.

Despite a decrease in stolen cryptocurrency, criminal activities like ransomware and darknet market operations saw substantial revenue growth compared to the previous year.

Massachusetts Senator Elizabeth Warren, a vocal cryptocurrency critic, urged federal regulators to intensify efforts against illegal crypto activities, accusing crypto lobbyists of undermining anti-terrorism financing measures.

The United Nations Office on Drugs and Crime (UNODC) reported an upswing in money laundering through online casinos in East and Southeast Asia, signaling the evolving landscape of transnational organized crime in the region. The report emphasized the rapid adoption of technology by major criminal groups, reshaping the crime environment in Southeast Asia.

Crypto Criminal Activity Drops By 29% According To Latest Chainalysis Findings In 2023

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