Chainalysis: Crypto Scam Revenue Dropped 46% in 2022 – Featured Bitcoin News

Revenue from cryptocurrency scams dropped 46% in 2022, in response to blockchain information analytics agency Chainalysis. “We attribute most of this decline to market conditions, as scam performance tends to worsen when cryptocurrency prices are in decline,” the agency defined.

‘Crypto Scam Revenue Fell Significantly in 2022’

Blockchain information analytics agency Chainalysis printed its 2023 Crypto Crime Report final week with a piece on crypto scams. “Crypto scam revenue dropped 46% in 2022,” the 109-page report reads, elaborating:

Crypto rip-off income fell considerably in 2022, from $10.9 billion the yr prior to only $5.9 billion.

Chainalysis tracks a number of varieties of crypto scams, together with giveaway scams, impersonation scams, funding scams, non-fungible token (NFT) scams, and romance scams.

Noting its numbers are “a lower-bound estimate,” the blockchain analytics agency defined that “estimates of the true amount lost to fraudsters will grow as we identify more addresses associated with scams.” The agency particularly talked about “pig butchering” scams which have turn into alarmingly widespread. The Federal Bureau of Investigation (FBI) has warned about this kind of crypto rip-off many occasions. Final November, U.S. authorities seized seven domains utilized by pig butchering scammers.

crypto scams Yearly crypto rip-off income from 2017 to 2022. Supply: Chainalysis.

Relating to the decline in crypto rip-off income, Chainalysis detailed:

We attribute most of this decline to market circumstances, as rip-off efficiency tends to worsen when cryptocurrency costs are in decline.

“Cryptocurrency scam revenue began the year trending upwards, but plummeted in early May — the same time the bear market set in following the collapse of Terra Luna — and then declined steadily throughout the rest of the year,” Chainalysis described.

Whereas noting that “some types of scams see revenue changes increase as crypto asset prices decrease,” the blockchain analytics agency identified: “Scam revenue throughout the year tracks almost perfectly with bitcoin’s price, consistently maintaining a three-week lag between price moves and changes in revenue.”

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Kevin Helms

A scholar of Austrian Economics, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His pursuits lie in Bitcoin safety, open-source programs, community results and the intersection between economics and cryptography.

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