Here’s where most crypto scams happen, according to new Chainalysis report

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A new report from analytics firm Chainalysis sheds light on where the most crypto scams are happening around the world.

The report focuses on crypto-related crimes in Eastern Europe, which Chainalysis says is second for illicit crypto activity behind Africa.

The company collects data showing the degree of exposure of addresses in each region to illicit addresses.

Source: chain analysis

Chainalysis notes that Eastern Europe sends more crypto to illegal darknet markets than anywhere else, largely because of the Hydra Marketplace, the world’s largest darknet market that caters to Russian speakers in the region. .

But overall, most of the illicit crypto transactions in Eastern Europe are tied to scams rather than online black markets.

“As is the case in all regions, scams account for the largest share of funds sent from Eastern Europe to illicit addresses, we can assume that most of this activity represents victims sending money. money to crooks. Between June 2020 and July 2021, addresses based in Eastern Europe sent $ 815 million to scams, just behind Western Europe.

Chainalysis also reports that Eastern Europe sends the most web traffic to fraudulent crypto-related websites, followed by Central and South Asia and Latin America.

Source: chain analysis

The company names Ukraine as the country that visits crypto scam websites the most, overtaking the United States despite its modest population of around 44 million.

Chainalysis says Finiko, a Russia-based company that has been viewed as a Ponzi scheme by the Russian central bank, captured the lion’s share of crypto-related scams and saw its founder arrested in July. Finiko is said to have received more than $ 1.5 billion in Bitcoin (BTC) via more than 800,000 separate deposits.

Finiko is one of nearly a dozen perpetrators identified by Chainalysis in a list of the top 5 crypto scams in each region of the world.

Source: chain analysis

You can read the full Chainalysis report here.

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