cryptocurrency

Illegal activities in crypto sector shrink amid market crash

 

Illegal activities in crypto sector shrink amid market crash
  • The volume of illicit transactions fell about 15% in the year to July.
  • Scam revenue totaled $1.6 billion so far in the year, 65% lower than July 2021.

The global crypto market has had a massive crash so far this year. The market has shrunk to less than a trillion dollars, due to many reasons such as the collapse of Luna Terra, stock market, inflation, and the freezing of transactions from Celsius Network. Currently, the cryptocurrency and digital asset industry is gradually increasing from the winter of the market.

Market-dominant bitcoin has fallen below $20,000, after hitting an all-time high in November. The major cryptocurrencies also faced a sharp decline amid market conditions. At the same time, criminal activities also decreased in the market, compared to the previous year.

Crypto Fraud Activities: 2021 and 2022

Bitcoin and other major currencies have risen and reached their high price in the previous year. At that time, crime activity also increased in the cryptocurrency market. But in 2022, the market faced a sudden crash and the major coins collapsed. When the price decreases, fraudulent activities are also reduced. according to the latest ReportsThe volume of illicit transactions decreased only 15% year-over-year compared to 36% for legitimate volumes.

So far this year, the total revenue from scams has reached $1.6 billion, which is 65% lower than it was at the end of July 2021. This decline appears to be the result of lower exchange rates for various currencies. Scam revenue almost fell after the price of bitcoin in January.

Fraud activities are reduced in the crypto scenario but that does not mean that they will continue to decrease day by day. So far, many inexperienced people have fallen victim to crypto-related fraud activities. When cryptocurrency prices drop, scammers present negative investment opportunities for cryptocurrencies with great returns promised to investors.

In addition, when the price rises, scammers create a buzz and promise their users quick profits. Investors who are new to the cryptocurrency industry are more likely to fall for these fraudulent activities.

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