Overall Illicit Activity in Crypto Drops 20% Year-to-date: Chainalysis
In its recent report, crypto compliance and research firm Chainalysis announced a 19.6% decrease in aggregate illicit activity on blockchain platforms from the beginning of the year to August 15. The figure dropped from $20.9 billion to $16.7 billion, indicating that legitimate crypto transactions are growing faster than illicit ones. However, among negative news, it was reported that two categories of illicit activity, namely stolen funds and ransomware, have seen an increase. Stolen funds nearly doubled from $857 million to $1.58 billion, while ransomware inflows rose by approximately 2%. The study also revealed that the average amount stolen per heist increased by 80%, with hackers now targeting centralized exchanges rather than DeFi protocols. On the other hand, this year is on track to be the most profitable for ransomware payments, with the median ransom payment rising from $200,000 in early 2023 to $1.5 million in mid-June 2024. Despite the increase in attacks, victims are paying ransoms less frequently. Chainalysis also noted that inflows to “risky services” like mixers and exchanges without KYC procedures are higher compared to the same period last year. The researchers emphasized the importance of disrupting cybercrime supply chains, highlighting the need for more resources and expertise in crypto investigations.