The world of cryptocurrency has been making headlines lately for its volatile market, but a much more concerning news topic has emerged: crypto crime. According to recent estimates, the amount of money lost in cryptocurrency-related thefts and scams has reached an all-time high of $20 billion!
This amount is staggering and has quickly become one of the most significant crimes in financial history.
About Crypto Crime
Crypto Crime has been on the rise as more and more people are turning to digital assets. Many criminals are taking advantage of cryptocurrency’s anonymity and ease of use to commit various types of fraud.
Cybercriminals use sophisticated tools to steal from unsuspecting victims or manipulate transaction data to generate profits. Recently, there have been reports of crypto-related crimes involving computer hacks, Ponzi schemes, ransomware attacks, money laundering, and counterfeiting. Here is a table showing you a report on cryptocurrency fraud each year.
| Years | Crypto crime ( in Million dollars) |
|---|---|
| 2018 | $12M |
| 2019 | $33M |
| 2020 | $130M |
| 2021 | $680M |
| Q1 2022 | $329M |
Crypto Crime Hits Record in 2022
Data from blockchain analytics company Chainalysis revealed on Thursday that illegal cryptocurrency use reached a record $20.1 billion last year as cash transactions organizations subject to U.S. sanctions increased sharply.
According to Chainalysis, transactions involving sanctioned entities grew more than 100,000 times in 2022 and accounted for 44% of all illicit activities in 2017.
In 2022, the cryptocurrency market suffered as risk-taking declined and several crypto businesses fell. Due to the large losses experienced by investors, regulators raised their requests for greater consumer protection.
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When did It start?
The first reported case of crypto crime was in 2011, when hackers attempted to steal over $2 million worth of Bitcoin from a user’s wallet. This particular incident set off a series of events that have led to an unprecedented surge in crypto-related criminal activities.
Cybercriminals have since taken advantage of cryptocurrencies’ decentralized nature and lack of regulation to launch malicious attacks against businesses, individuals, and even entire countries.
Crypto Crimes In Countries
Now the question is, in which country is crypto crime increasing? The answer may surprise you. According to a recent study from Chainalysis, there are three clear leaders regarding crypto crime: Russia, China, and Vietnam.
These three countries account for about 70% of all reported crypto crimes worldwide – with Russia leading by a wide margin.
Why is Crypto Crime Happening?
One reason for crypto crime is the relative ease of setting up accounts on digital currency exchanges. Transactions can be done quickly and anonymously with no need for personal information to be provided. This makes it very attractive for criminals who want to move illicit funds without being traced or identified by law enforcement agencies.
Additionally, many digital currencies are decentralized and lack regulations, making them vulnerable to criminal exploitation as no one entity controls them or keeps track of transactions.
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To summarize
Crypto crime is no joke and is on the rise. This year alone, crypto criminals have managed to steal a record-breaking $20 billion in digital assets from unsuspecting investors. The sheer amount of money stolen should be an eye-opener for governments, exchanges, and users alike to ensure that their platforms are secure and that proper regulation is implemented. It is now more essential than ever to take security measures seriously when trading or investing in cryptocurrency.