Cryptocurrency crimes reach record high in 2022

02/28/2023 22:13 • NFT Newsflash • 150 views

It is reported that according to a new report from the blockchain research company Chainalisis, the value of cryptocurrency crimes in blockchain transactions reached a record $20.6 billion in 2022. Kim Grauer, the research director of the company, said on Monday that although other forms of illegal activities may be on the decline, “there are two categories that really stand out in terms of growth: sanctioned activities and hacker attacks”. According to the Chainalisis report, criminal activities accounted for 0.24% of all blockchain transactions last year, an increase of 0.12% over the previous year.

Report: Cryptocurrency crime hit a record high of US $20.6 billion in 2022

Interpret the above information:

The report from Chainalysis, a leading blockchain research company, reveals that cryptocurrency crimes in blockchain transactions reached a peak of $20.6 billion in 2022. The research director of the company, Kim Grauer, stated that sanctioned activities and hacker attacks showed unprecedented growth compared to other forms of illegal activities. The Chainalysis report suggests that the overall percentage of criminal activities in blockchain transactions has increased from 0.12% to 0.24% in the past year.

The report hints at staggering growth of cybercrime in the cryptocurrency ecosystem, especially when traditional crimes such as money laundering, human trafficking, and drug smuggling have reportedly decreased. Moreover, the report suggests how hackers and other actors are drawn to the decentralized nature of blockchain technology, which is not subject to traditional financial regulations. This aspect allows bad actors to use cryptocurrencies as an alternative currency for illegal activities, from purchasing drugs to funding terrorism.

Furthermore, cybercriminals are using sophisticated techniques such as phishing, ransomware, and DDoS attacks to target cryptocurrency exchanges and users. Hackers have exploited security vulnerabilities, resulting in the loss of millions of dollars for users and exchanges. As a result, the cryptocurrency market has an urgent need for more secure and robust security protocols to protect against cyber attacks.

In conclusion, the rise of cryptocurrency crimes is a worrying trend. The report highlights the need for stronger regulation and security protocols to protect the growing number of cryptocurrency customers and exchanges. The decentralized nature of blockchain technology is its strength, but it can also be its weakness if not adequately protected. The current trend of growth in cryptocurrency crimes requires the collective efforts of policymakers, regulators, law enforcement agencies, and the cryptocurrency community to prevent it from escalating.

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Cryptocurrency crimes reach record high in 2022

Report: Cryptocurrency crime hit a record high of US $20.6 billion in 2022

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