- In 2016, the figure was as high as 97%
- The illegal crypto activity has now shifted to other blockchains
- The most popular networks for fraudsters were Ethereum, Tron and Binance Smart Chain
- Total victims lost more than $7.8 million
TRM Labs, a leading blockchain smart solutions company, published a report regarding illegal cryptocurrency transactions. According to this document, there is a change in cryptocurrency, namely the transition from the Bitcoin blockchain to other networks such as Ethereum, Tron, Binance Smart Chain and others. Notably, Bitcoin accounts for only 19% of the illegal volume of cryptocurrency.
At 2022, the total amount directed to various fraud schemes was about $9.04 billion, with most being Ponzi schemes or financial pyramid schemes. Approximately $2 billion has been stolen through cross-chain bridge attacks.
In order to conceal their actions, criminals are increasingly using techniques such as cross-networking, which involves moving funds from one blockchain to another. This makes it harder to track these funds externally.
In 2016, two-thirds of hacking attacks targeted bitcoins. However, in 2022 this percentage has decreased significantly. At the same time, Ethereum (68%) and Binance Smart Chain (19%) have become more popular with criminals. The report also writes that BTC is no longer considered the best cryptocurrency to fund terrorist activities, as this market is now dominated by USDT on the Tron blockchain.
You can also read about the losses that the DeFi sector suffered in the second quarter of 2022 due to hacking and fraud.