Crypto Scam Revenue Has Dropped by 65% in 2022: Chainalysis

Illicit crypto volumes have been diminishing year-over-year, with scams making the largest drop, according to a report by blockchain analytic firm Chainalysis.

Chainalysis pointed out:

“Total scam revenue for 2022 currently sits at $1.6 billion, 65% lower than where it was through the end of July in 2021, and this decline appears linked to declining prices across different currencies.” 

Source: Chainalysis

The blockchain analytic firm pointed out that the drop in scam revenue might be linked to Bitcoin’s bearish momentum, which has seen the leading cryptocurrency decline by at least 64% from its all-time high (ATH) price of $69K recorded in November last year. 

Chainalysis added:

“Since January 2022, scam revenue has fallen more or less in line with Bitcoin pricing. And as we see on the chart below, it’s not just scam revenue falling — the cumulative number of individual transfers to scams so far in 2022 is the lowest it’s been in the past four years.”

Source: Chainalysis

Therefore, the report highlighted that people falling for crypto scams have nosedived. The other area that has seen illicit volume drop is the darknet market.

Nevertheless, the tale is different regarding hacking and stolen funds because this is an illegal crypto activity area that has been going through the roof. Chainalysis pointed out:

“No area of cryptocurrency-based crime is bucking the 2022 trend of declining revenue like stolen funds.”

Source:Chainalysis

The report added:

“Through July 2022, $1.9 billion worth of cryptocurrency has been stolen in hacks of services, compared to just under $1.2 billion at the same point in 2021.”

Meanwhile, Alexander Vinnik, a Russian national accused of running an illegal crypto exchange BTC-e was recently extradited to the United States to face fraud charges. 

Following a 21-count superseding indictment charge in January 2017, Vinnik, with his co-conspirators, administered, operated and owned BTC-e, a significant online money laundering and cybercrime entity that permitted Bitcoin trading among users.