Chainalysis Report: Crypto Scam Profits Plummet by 77% YoY, while Ransomware Attacks Soar in H1 2023
According to a recently released report by blockchain data platform Chainalysis, the first half of 2023 has seen a significant reduction in cryptocurrency-related crimes.
Specifically, scams, known for generating substantial profits within the crypto crime landscape, experienced a staggering 77% decline in revenue compared to the same period last year. The revenue drop amounted to nearly $3.3 billion less than what scammers earned in 2022, with their total gains for 2023 barely surpassing $1 billion.
This decline in scam revenue is particularly noteworthy considering the recent resurgence in the prices of digital assets like Bitcoin (BTC) and other cryptocurrencies, which have been recovering from the losses incurred in 2022. The report highlights that the primary factor contributing to the revenue decrease is the sudden disappearance of two major scams, namely VidiLook and Chia Tai Tianqing Pharmaceutical Financial Management.
Typically, positive price movements in the cryptocurrency market lead to higher scam revenue, as increased market enthusiasm and the fear of missing out (FOMO) make individuals more vulnerable to scammers’ tactics. However, the drastic decline in scams during 2023 deviates from this long-standing trend.
In contrast, the report reveals that ransomware attacks are witnessing a surge, bucking the overall positive trend. Ransomware is the only form of cryptocurrency-based crime expected to grow this year, with attackers managing to extort an additional $175.8 million compared to the same period in 2022.
This increase in ransomware revenue represents a reversal of the downward trend observed in 2022. Chainalysis attributes this rebound to attackers targeting affluent victims, specifically engaging in big game hunting. This practice, which involves targeting large, deep-pocketed organizations, seems to have regained momentum after a lull in 2022, as noted in Chainalysis’ annual Crypto Crime Report published in February.
In summary, the Chainalysis report indicates a substantial decline in crypto scams during the first half of 2023, resulting in significantly reduced revenue. However, ransomware attacks have seen a surge, highlighting the targeting of affluent victims as a contributing factor to this growth.
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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
