Cryptocurrency criminals, as per a mid-year report from Chainalysis, are currently finding their earnings curtailed due to a decrease in scams and hacking. The sector reported a deficit of around $2.5 billion, a 65% decline compared to 2022. Meanwhile, legal actors are also witnessing a decrease in inflows, albeit significantly less severe, amidst a dull bear market.
One key aspect has been the diminished activities by scammers — with entire billions less trickling into their wallets. Notably absent are major operations like VidiLook and Chia Tai Tianqing Pharmaceutical Financial Management, the latter, having promised extravagant returns to investors, was found to be an exit scam. Even as bitcoin rallies 83% within this year, this vacuum hasn’t been filled, hinting at reduced encouragement for new wrongdoers.
Yet, while the industry as a whole is progressing, some deviant pockets persist. Impersonators are one such group that have experienced an uptick in their duping—nearly half as many more victims this year; thus, resulting in only a 23% drop in overall inflows. This is contrasted with a 70% decline other scams have undergone.
However, there exists a silver lining wrapped around this dark cloud — ransomware attackers are one such pocket, who have outperformed their previous year’s “achievement,” extorting nearly $450 million so far. The success rate of such attackers is seen across all organisations, large and small, with no discrimination between refined targeted ransomware or the less meticulous “spray and pray” approaches.
As it stands, the landscape hence presents a mixed bag for the crypto enthusiasts. There are fewer scams in the space allowing more room for legitimate actors, a definite positive. Yet, the persisting pockets of illicit activities serve as a stern reminder of the inherent challenges in the world of blockchain, and a nudge towards higher caution levels. The main underlying struggle emerges to be striking a balance between the clear advantages of blockchain and cryptocurrencies while warding off their exploitations. A constant vigilance and agility within the community and the system can certainly ensure more steps forward than back.
Source: Coindesk
