- A recent Chainalysis research indicates that there has been an almost 20% decrease in illicit activities on-chain so far this year.
- The survey also noted that ransomware and stolen funds are two types of illegal activities that are increasing, despite the fact that overall crypto crime has decreased.
A recent research from prominent blockchain analytics company Chainalysis shows that while inflows into legal services are at their greatest point since the previous bull run of 2021, illicit bitcoin activity has declined since the year’s beginning.
The company’s 2024 Crypto Crime mid-year report stated that aggregate criminal activity had decreased from $20.9 billion to $16.7 billion year to date, a 19.6% decrease.
The report pointed out that in addition to a decline in illegal activity, inflows into lawful businesses have reached their greatest level since 2021, when bitcoin hit an all-time high of almost $68,000.
As per the analysis, this positive indication suggests that cryptocurrency will continue to gain traction worldwide.
An increase in malware and stolen money
Two types of cryptocurrency crime seem to be defying the general trend, despite the report’s assertion that total cryptocurrency crime has decreased since the year’s beginning. According to the analysis, since January, inflows of ransomware have increased by almost 2%, from $449.1 million to $459.8 million, while inflows of stolen cash have almost doubled, from $857 million to $1.58 billion.
The average value of bitcoin stolen in each criminal occurrence has grown, according to the research. The price increase of bitcoin, which accounted for 40% of the total transaction volume associated with these heists, has contributed to an increase in the average amount of cryptocurrency stolen per heist of about 80% since January, according to the analysis.
The research predicts that 2024 will be the highest-grossing year for ransomware payments ever, despite a fall in overall unlawful activity. This is partly because of strains that have conducted less high-profile attacks but are nevertheless obtaining substantial payments, referred to in the industry as “big game hunting.” The research stated that ransomware inflows have topped $459.8 million, indicating that another record-breaking year for ransomware may be in store.
Off-chain techniques employed in illegal activities
The Chainalysis analysis also discovered that hackers, especially North Korean-affiliated IT professionals, are increasingly using off-chain techniques to breach cryptocurrency-related businesses and steal money.
Hacking groups with ties to North Korea are well-known for being responsible for some of the biggest financial thefts. According to the research, these actors have a history of using strategic social engineering strategies to gain access to cryptocurrency businesses, steal cryptocurrency assets, and use sophisticated money laundering methods in an effort to withdraw their profits before the funds can be confiscated.
According to a recent UN report referenced by Chainalysis, thousands of North Koreans engaged in cybercrime were applying for jobs at Western computer businesses by utilizing cunning deception techniques.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
