Chainalysis, a prominent blockchain analysis company, has recently released a teaser for its upcoming 2024 Crypto Crime Report, revealing some interesting insights into the world of cryptocurrency crime. According to the report, the value of cryptocurrency flowing into illicit addresses in 2023 was significantly lower than the previous year, with sanctioned entities accounting for the majority of activity.
In 2023, $24.2 billion was received by addresses identified as illicit, marking a 39% decrease from the $39.6 billion seen in 2022. However, Chainalysis noted that this figure may increase as more unlawful addresses are identified and historical activity is added to estimates. Sanctioned entities and jurisdictions made up over three-fifths of the 2023 total, totaling $14.9 billion. This increase in activity is likely due to the Treasury’s Office of Foreign Assets Control targeting Russian entities following the country’s invasion of Ukraine.
Ransomware and darknet markets were highlighted as two prominent forms of crypto crime that saw revenue growth in 2023. Despite an overall decline in cryptocurrency-related crime, revenue from scams and hacking fell year-on-year. Chainalysis noted that scams have been on a downward trend since 2021, attributing this to market dynamics and decreased exuberance. Hacking, on the other hand, saw a significant drop in 2023, largely due to a decrease in DeFi heists.
The report also pointed out that crypto hacking is harder for criminals to hide, making the figures more reflective of the underground market. The decrease in DeFi heists could indicate an improvement in security practices among DeFi protocols. However, Chainalysis cautioned that the stolen funds metrics are heavily influenced by outliers, and one large hack could shift the trend once again.
Overall, the 2024 Crypto Crime Report provides valuable insights into the evolving landscape of cryptocurrency crime. As the industry continues to mature and regulatory bodies crack down on illicit activity, it will be interesting to see how these trends develop in the coming years. Stay tuned for the full report for a deeper dive into the world of crypto crime.