Cryptocurrency crime has decreased by 19.6 percent year-to-date, a new report finds.
The total value of crypto funds involved in criminal activities fell from $20.9 billion to $16.7 billion compared to the same period last year, according to a new report by blockchain data company Chainalysis, signaling growing maturity in the digital assets ecosystem.
However, ransomware attacks are on the rise, with 2024 on track to be the highest-grossing year for cybercriminals yet. Cumulative ransomware payments through June 2024 reached $459.8 million, surpassing the $449.1 million recorded in the same period of 2023. A record-breaking single ransomware payment of $75 million was made to a group known as Dark Angels, representing a 96 percent year-over-year increase.
The report also found that legitimate digital currency activity is growing faster than illicit activity, reaching its highest levels since 2021.
“It is highly encouraging to see that criminal activity continues to become an ever-shrinking share of the crypto ecosystem,” said Eric Jardine, Cybercrime Research Lead at Chainalysis.
“The growth of legitimate activity outpacing that of illicit activity on-chain demonstrates the continued transition of cryptocurrencies to the mainstream.”
Rise in stolen crypto fundsAside from ransomware, stolen funds were also on the rise, with inflows nearly doubling from $857 million to $1.58 billion. In addition, the average amount of cryptocurrency stolen per heist rose by around 80 percent.
The surge in stolen digital currency value can be partly explained by Bitcoin’s price appreciation, with BTC transactions making up a significant portion of the post-hack fund movements. There has also been a noticeable shift in cybercriminal tactics, with a renewed focus on centralised exchanges rather than decentralised finance (DeFi) platforms. This trend may be influenced by the fact that traditional exchanges are more commonly used for Bitcoin trading, Chainalysis said.
Sophisticated hacking groups, some allegedly connected to North Korea, are adapting their strategies. They are employing more non-blockchain methods, particularly social engineering techniques, to compromise crypto service providers. These tactics have allowed them to gain unauthorised access and siphon funds from within these organisations.
