Cryptocrime Set Back in 2023 But Ransomware Will Win: Chain Analysis

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Cryptocurrency crime is the least profitable this year, according to a mid-year report by Chinalysis, a company known for tracking illegal wallet addresses. The report indicated a significant reduction of 65% of the losses due to violent activities at the end of June, which shows a rare change in the otherwise volatile crypto industry.

Interestingly, the bear market seems to have had a greater impact on illegal players than illegal players. While losses for the former were close to $2.5 billion, the latter's fall was much more severe.

Two notorious scams previously charged with big money buyouts, VidiLook and Chia Tai Tianqing Pharmaceutical Financial Management, have gone off the radar. This fall comes despite Bitcoin's rally up 83% year-to-date, a market environment that encourages opportunistic fraudsters.

However, the picture is not so bleak for fraudsters. The report found that fraudsters posing as high-powered impersonation scams are on the rise, with a nearly 50% increase in victims. Still, total revenue for these fraudsters fell by just 23%, compared to a 70% drop for other types of fraud:

“The number of people redirected to fraudulent addresses has increased by 49% annually, with more people falling victim to phishing scams by 2023, although the total amount lost is lower.”

Ransomware attackers are a serious concern. They have raised nearly $450 million so far this year, surpassing their 2022 earnings, the report said. These attackers have successfully targeted both large and small organizations by employing sophisticated targeted ransomware techniques with less sophisticated approaches.

The crypto landscape of 2023 is a curious mix of reduced criminal activity combined with the rising threat of ransomware. While the decline in crime offers a glimmer of hope, the rise of ransomware underscores the need for greater caution and stronger security measures.

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