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The Share of Illegal Transactions in Сrypto is Lower than ever amidst the Total Market Volume Growth, Chainlink Reports

In a recent preview of the 2022 Crypto Crime Report of Chainlink, the company states that during 2021 cryptocurrency-based crime has hit a new all-time high, with illicit addresses receiving $14B over during the year which is an almost double rise from 2020’s $7.8B level.

The biggest surprise to the researchers is that all cryptocurrencies tracked by the company grew their total volume of transactions to $15.8Tr in 2021 which is an 567% up from 2020’s totals. However, the increase of cybercrimes involving crypto is only 79%. 

The positive side of the report mentions that with the growth of legitimate crypto usage, the illicit activity’s share of cryptocurrency transaction volume has never been lower. According to the report, the highest levels were during 2019, when 3.37% of all transactions were connected to criminal activities, whereas during 2021 the share of these activities was only 0.15%.

Researchers outline the tendency that crime is becoming “smaller and smaller” part of the cryptocurrency ecosystem, and Law Enforcements’ ability to combat crypto-based crime is also evolving. 

The crime categories to stand out during 2021 are stolen funds, scams, with DeFi being one of the main fields of action for both. During last year scamming revenue rose by 82%, but cryptocurrency theft grew by 516% compared to 2020. This translates to roughly $7.8B stolen in scams and $3.2B crypto stolen from victims. The DeFi sector is also the one with the most growth in value received by service from illicit activities between 2020 and 2021 – almost 2000% rise.

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