Popular blockchain data platform Chainalysis has released a mid-year crypto crime update report. The report presents data about crypto crimes in July 2022 (compared to the previous year). Here is what it has to say.
Scam revenue is down
As per the report, the total scam revenue through July 2022 came in at $1.6 billion, which is 65% lower than where it was through July 2021.
The top three scams in 2022, which drained close to $650 million of investors’ money, are JuicyFields.io, Unique-Exchange.co, and OmegaPro.World.
Fewer fall prey to scams
It also appears that fewer people are falling prey to crypto scams. The report explains that while the decline in scam revenue could be due to a drop in the prices of crypto assets, simply going by the cumulative number of deposits made by individuals to scammers, it seems that fewer people are falling prey to crypto scams than ever before.
Hacking-related illicit activity increasing
One of the concerning developments in the crypto market is the evident increase in the instances of hacking in recent months. As estimated in the report, through July 2022, $1.9 billion was stolen in hacks. Compare that to the $1.2 billion stolen in hacks during the same period last year, and you’ll see that the rise is significant.
The biggest hack has been the Nomad cross-chain bridge hack. The hackers in that instance siphoned off $190 million. Another important hack was the Solana one. The blockchain’s wallets were hacked, and the hackers got away with $5 million.
Recently, the website of DeFi protocol Curve was hacked, too. Cryptos worth $570K were stolen but the majority of the funds were recovered.
Illicit activities in the crypto market as a whole drop
That said, Chainalysis reports that illicit activities in the crypto market have fallen. However, it clarifies that the drop is not as sharp as expected. The decline in the price of cryptos and reduced investor appetite for risk-on assets like crypto has been one of the factors behind fewer market newbies being fooled by scammers.
As per the analysis done by Chainalysis: “We shouldn’t expect theft to drop based on cryptocurrency market movements the way scamming does—as long as crypto assets held in DeFi protocol pools and other services have value and are vulnerable, bad actors will try to steal them.”