cryptocurrency

Are crypto scammers getting less busy?

The cryptocurrency space has crashed and burned over the past several months, but it seems that it’s not just investors who are suffering. Crooks – who were once very active in this unregulated arena – It has also taken completely Few financial hits, suggesting that there is some good news for the trials and tribulations of the cryptocurrency industry.

Scammers don’t make much money

Over the past several weeks, we have been privy to a wide range of bad headlines surrounding bitcoin and its digital counterparts. Companies such as Celsius and Voyager Digital were forced into bankruptcy proceedings; Bitcoin is down more than 60 percent from its high in November; And the crypto space lost nearly $2 trillion in overall valuation.

It is not a good time to be a cryptocurrency investor, but it is clearly not a good time for crypto scammers either. According to a new report from blockchain analytics firm Chainalysis, crypto scams have fallen by nearly 65 percent over the past several months. The document shows the theft of nearly $1.6 billion between July 2021 and July of this year. This is significantly lower than the figures published for the previous 12-month period. Also, dark web revenue is down nearly 43% from last year.

Chainalysis commented that while it is normal to see a drop of about 15 percent in crypto crime every 12 months, the numbers show that many bad actors have apparently left the scene and are now likely to find other ways to support themselves. The report stated:

These numbers indicate that fewer people are falling for cryptocurrency-related scams than ever before. One reason for this may be that as asset prices fall, crypto-related scams – which usually present themselves as passive crypto investment opportunities with massive and promising returns – are less alluring to potential victims. We also assume that new, inexperienced users who are more likely to fall for scams are less prevalent in the market now with lower prices, as opposed to when prices go up, and are drawn in by the hype and promise of quick returns.

In 2022, the largest cryptocurrency scam resulted in the loss of assets of approximately $273 million. While this is certainly a large number on paper, it pales in comparison to previous numbers of money stolen in the crypto world. For example, Mount Gox saw over $400 million worth of BTC stolen in 2014, while four years later, Coincheck will see about half a billion crypto funds vanish.

Intruders remained prevalent

But while scammers may be missing out, Chainalysis says hackers are getting busier and busier. Its report stated:

It doesn’t look like this trend will reverse anytime soon, as the $190 million hack of the Nomad Chain Bridge and the $5 million hack of several Solana wallets actually occurred in the first week of August.

Tags: Chainalysis, hackers, scammers

#crypto #scammers #busy

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