The value of cryptocurrency that flowed into illegal addresses in 2023 was almost two fifth lower than the figure a year earlier, with sanctioned entities that according to the chain analysis are good for the vast majority of activity.
The Blockchain Analysis Company unveiled the news in a teaser of its upcoming 2024 Crypto Crime Report. It follows funds stolen in crypto “hacks” and money that is sent to addresses identified as illegal, but no money associated with money laundering or “non-Native Crypto crime” such as drug trafficking.
It claimed that $ 24.2 billion was received by the addresses that it follows as illegal in 2023, a decrease of 39% to $ 39.6 billion of 2022, however, the chain analysis has the lead by claiming that the 2023 figure can increase as the more illegal addresses identify and history activities.
As an example, the initial figure was $ 20.6 billion for 2022, but it has now grown to $ 39.6 billion, largely due to $ 8.7 billion in claims against fraud-held crypto exchange FTX.
Chain analysis revealed that sanctioned entities and jurisdictions represent more than three fifth ($ 14.9 billion) of the Figure 2023. That is not surprising how busy the office of the Treasury of Foreign Assets Control (OFAC) is pressure in the aiming of Russian and other entities after the country’s invasion of Ukraine.
Read more about cryptocurrency-related crime: crypto crime down 62% but ransomware activities increases
The country also remains a large number of suspected ransomware actors and associated companies such as Russian Exchange Garantex.
“Ransomware and DarkNet -Markten … are two of the most prominent forms of crypto crime in which the income in 2023 increased, in contrast to the general trends,” Chainalysis said.
“The growth of the income of ransomware is disappointing after the sharp falls we dealt with last year, and suggests that perhaps ransomware attackers have adapted to the cyber security improvements of organizations, a trend that we first reported this year.”
Income from crypto clay and robberies is falling
Elsewhere, illegal income fell associated with crypto-scores (-29.2%) and hacking (-54.3%) both year-on-year in 2023.
Interestingly, chain analysis stated that scam has fallen annually since 2021 annually and even taking into account under reporting.
“We believe that this is in accordance with the long -term trend that scam is the most successful when the markets are up, exuberance is high and people feel that they are missing a chance to get rich quickly,” the report noted.
“Of course, the impact of romantic scammer on individual victims is devastating and should not be called in. And although an increased reporting-aldhans in the US is a good sign, we still believe that insights in romantic scams in particular suffer to too little reported.
Crypto “hacking” is more difficult for criminals to hide and so the figures here are more accurate reflection of the underground market, the chain analysis continued. The downward trend in 2023 is apparently largely due to a significant decline in Defi robbery.
“That drop-off could represent the reversal of a disturbing, long-term trend and can mean that Defi protocols improve their security practices. Having said, stolen fund statistics are heavily biting and one big hack could shift the trend again,” Chainalysis said.