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Cryptocurrency-related crime is down significantly this year, according to data by Chainalysis. Specifically, the blockchain analytics firm explained that crypto inflows to known illicit entities are down 65% compared to the previous year while inflows to risky entities are down 42%.
Blockchain analytics firm Chainalysis released its mid-year update on cryptocurrency-related crime on Wednesday. Noting that crypto crime is down 65% overall, the firm wrote:
Our data shows that cryptocurrency-related crime is down significantly this year.
“Through the end of June, crypto inflows to known illicit entities — not including inflows to entities that have been sanctioned or subject to special measures — are down 65% compared to where they were at the same time in 2022,” Chainalysis detailed.
In addition, “Inflows to risky entities (made up primarily of mixers and high-risk exchanges) are down 42%” and “Inflows to illicit addresses are down in nearly every category,” the firm noted.
While crypto crime is down substantially overall, the blockchain analytics firm pointed out that ransomware was the sole type of cryptocurrency-related crime projected to grow in 2023, as attackers have extorted an additional $175.8 million more than they did during the same time period last year.
Moreover, crypto scammers have experienced a significant drop in revenue compared to the previous year, with their total collections in 2023 through June being approximately $3.3 billion less than in 2022. Noting that their total earnings for the current year amounted to slightly over $1 billion, Chainalysis emphasized:
Through the end of June, crypto scammers have pulled in 77% less revenue than they did through June of 2022 — and keep in mind as well that 2022 itself saw a large drop in revenue compared to 2021.
