In a surprising shift, Bitcoin (BTC) no longer seems to be the crypto of choice among cybercriminals, with its involvement in crypto crimes dropping to a mere 19% in 2022, according to a report by blockchain intelligence firm TRM Labs. This marks an incredible reduction from 2016 when it was implicated in a whopping 97% of crypto-related illegal activities.
One might ask why? The answer lies in the diversification of blockchain platforms used or rather misused by those in the darker corners of the crypto sphere. Platforms like Ethereum, Tron, and BNB Chain are experiencing a surge in their utilization for unsavoury engagements.
This emergence of a multi-chain era, as TRM Labs phrases it, has had a profound influence on the dispersion of the unlawful crypto volume as a whole. However, blockchains are not the only preferred mediums for these nefarious activities. Reportedly, many cybercriminals still favour various types of fiat payments for moving their illicit gains out of sight.
In fact, ancient forms of finance, such as hawala (an informal method of transferring money without physical movement), remain the trusted avenues for financing illegal activities and subsequent laundering of proceeds. Does it make cybercriminals old-fashioned, or do they simply favour anything that helps them avoid detection?
The report also sheds light on inventive tactics employed by cybercriminals to cover their tracks. One such method is “chain-hopping”, a technique where fraudsters shift their gains across different blockchains to make detection and tracking extraordinarily challenging.
In spite of the diversification, the sheer scale of this fraudulent crypto landscape is eye-opening. TRM Labs’ report estimates that a staggering $7.8 billion was funneled into various crypto fraud schemes throughout 2022. Of this hefty figure, approximately $2 billion came from hacks and exploits of cross-chain bridges, the channels used to move digitals assets from one blockchain to another.
Several incidents echo this trend, with the infamous Ronin Bridge attack from 2022, where over $600 million was masterfully stolen, being the most notable.
The shift in illegal activities from Bitcoin towards other platforms underscores the urgency to map the illicit financial streams in the convoluted multi-chain world. This development is indeed worth a closer scrutinity for everyone invested in blockchain technology and a wake-up call for increased vigilance and security measures.
Source: Cryptonews
