Crypto Scam Revenue Drops 65% Amid Economic Recession

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As the global slump continues, crypto scam revenue for 2022 also fell 65 percent to $1.6 billion this year, down from the end of July 2021.

Since January 2022, the scam’s revenue has fallen more or less in line with Bitcoin prices, reports blockchain analytics firm Chainalysis.

“It’s not just the drop in scam revenue: the cumulative number of individual transfers to scams so far in 2022 is the lowest it’s been in four years,” the report said.

These numbers suggest that fewer people than ever are falling for cryptocurrency scams.

One reason for this could be that with falling asset prices, cryptocurrency scams are less attractive to potential victims.

“New and inexperienced users who are more likely to fall for scams are less likely to be in the market now that prices are falling, as opposed to when prices are rising and are attracted by hype and the promise of quick returns” , the findings. shown

It has been a tumultuous year for cryptocurrency markets, with significant price drops across all currencies in May and June.

Bitcoin is currently between $20,000 and $24,000 per digital currency.

“Overall, criminal activity appears to be more resilient to falling prices: illicit volumes are down just 15% year-on-year, compared to 36% for legitimate volumes,” the report said.

The scam’s revenue is often driven by large stocks, such as PlusToken, which earned more than $2 billion from victims in 2019, or Finiko, which earned more than $1.5 billion in 2021.

So far in 2022, no scams identified so far come close to the level of either.

The biggest scam of 2022 so far has grabbed $273 million in cryptocurrency, just 24% of Finiko’s revenue through the end of July 2021.

However, it is possible that “an outlier could emerge or be identified before the end of the year and reverse the trend of declining scam revenue we are currently seeing.”

Darknet market revenue has also dropped significantly in 2022 and is currently 43 percent lower than through July 2021.

Hacking activities and stolen funds are still heading north in 2022.

Through July 2022, $1.9 billion in cryptocurrency has been stolen in service hacks, compared to just under $1.2 billion at the same time in 2021.

This trend does not appear to be reversing anytime soon, with a $190 million hack of the Nomad cross-chain bridge and a $5 million hack of several Solana wallets already occurring in the first week of August.

–IANS

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(Only the title and image for this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

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About the Author: Chaz Cutler

My name is Chasity. I love to follow the stock market and financial news!