According to the latest report by Chainalysis, the cryptocurrency industry experienced a notable recovery in 2023. The previous year’s trend signaled a turnaround from the challenges faced in 2022. The analysis company noted a drop in crypto crime instances in the year.

The report suggests that with crypto assets rebounding and increased market activity throughout the year, there is a growing sentiment that the period of crypto winter may be coming to an end.

Year of recovery from crypto crimes

Additionally, Chainalysis reported a drop in the value received by illicit cryptocurrency addresses in 2023. This crypto crime value totaled $24.2 billion in the year gone by.

Yet, the report issues a cautionary note, suggesting that the forthcoming updated figures may expose a surge in estimates of illicit activity. A case in point is the inclusion of $8.7 billion in creditor claims against FTX in the 2022 figures, following the conviction of FTX’s former CEO for fraud.

In general, the report notes a substantial decline in revenues from crypto scamming and hacking activities in 2023. It underlined a decrease of 29.2% and 54.3%, respectively, in total illicit revenue.

Cyber hackers using new tech

Ransomware and darknet markets bucked the overall trend by experiencing an increase in revenues. The report implies that this upswing in ransomware revenue may signify attackers adapting to improvements in organizations’ cybersecurity measures.

One of the standout trends identified in the report is the prominence of sanctions-related transactions in illicit transaction volume.Entities and jurisdictions under sanctions contributed $14.9 billion to the total transaction volume in 2023. This formed a massive 61.5% of all measured illicit transaction volume.

Despite a generally improved trend in crypto crime throughout 2023, a separate report points to December as the worst month of the year.

With $1.595 billion reported lost to #crypto crimes, December marked the worst month of the year 2023.

2023 ended with the reveal of a 1.3B Ponzi, $300M Wallet Drain from retail investors & an exit scam posing as a hack!

Learn more in our report https://t.co/XIvQPbblud pic.twitter.com/ws8qaNBLuq

— Nefture – DeFi Security Layer (@Nefture) January 11, 2024

Recently, a UNODC report also revealed a worrisome trend in the misuse of cryptocurrency in East and Southeast Asia. CoinGape noted that law enforcement is facing challenges as criminal organizations are employing chatbots and deepfake technology for advanced cyber fraud.

The post Crypto Crime Trend: Sanctioned-Transactions Surged Despite Recovery in 2023 appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am