Chainalysis found that trading volumes have declined this , with at $1.6 billion, 65 percent below the level at the end of July last year. “These figures that fewer people are falling into cryptocurrency scams than ever before,” the blockchain data analytics firm wrote.

Data Shows Illicit Crypto Trading Volume Down

On Tuesday, blockchain data analytics firm Chainalysis released its mid-year cryptocurrency crime update, titled “Illegal activity declines with other , with some notable exceptions.”

Overall, the company wrote:

Illicit volumes were down just 15% year-on-year, while legal volumes were down 36%.

Specifically, “gross revenue from scams in 2022 is currently $1.6 billion, 65% lower than the level as of the end of July 2021, a decline that appears to be related to falling prices in different currencies,” Chainalysis noted.

Additionally, “the cumulative number of individuals transferred to scams through 2022 is the lowest in the past four years,” the company added.

Detailed chain analysis:

These figures that fewer people are falling into cryptocurrency scams than ever before. One reason for this could be that as asset prices fall, cryptocurrency scams… become less attractive to potential victims.

The company noted that none of the scams found in 2022 are on the level of Plustoken or Finiko. The former netted more than $2 billion from victims in 2019, while the latter netted more than $1.5 billion from victims in 2021.

Additionally, darknet market revenue has fallen significantly this year, and is currently 43% below levels as of July 2021.

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One area of ​​increased illicit activity in 2022 is hacking and stolen funds. Blockchain Analytics Company Description:

By July 2022, $1.9 billion worth of cryptocurrency was stolen in service hacks, compared to less than $1.2 billion at the same time in 2021.

“This trend doesn’t appear to be reversing anytime soon, with the $190 million hack of the cross-chain bridge Nomad and the $5 million hack of several Solana wallets already taking place in the first week of August,” Chainalysis added. “This can largely be attributed to the phenomenal growth in funds stolen from defi [decentralized finance] agreement, this trend will start in 2021. “

What do you think of Chainalysis’ findings? Let us know in the comments section below.

Kevin Helms

As an Austrian economics student, Kevin discovered in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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