Cryptocurrency hits new high: US$20 billion in 2022

[ad_1]

Weak to poor regulatory oversight, pseudonymity, and the irreversible nature of crypto transactions have made it a perfect getaway car for cybercriminals. Therefore, despite the successive collapse of several cryptocurrency businesses throughout 2022, the value of cryptocurrency transactions related to illicit activities reached a new high estimated at US$20.1 billion in 2022. , according to a report by Chainalysis.

We must stress that this is a lower estimate, our measure of the volume of illicit transactions will certainly increase over time,” the report says, referring to the need to revise its 2021 estimate of US$14 billion. to US$18 billion as new scams were uncovered. .

Hundreds of billions of dollars were wiped out for millions of consumers around the world in 2022 as major cryptocurrency players went bankrupt, flipping what was at its peak a US$3 trillion market. Its implosion left investors with significant losses and amplified calls for regulatory oversight to protect consumers. The collapse of Singapore-based TerraUSD set the tone for the year, which began with a massive token sale that wiped out an estimated US$500 billion in a matter of weeks. Its collapse set off a chain reaction that would lead to the subsequent downfall of crypto lenders Celsius Network, Voyager Digital, Three Arrows Capital and ultimately BlockFi and FTX.

The result was a crypto winter that reduced overall crypto transactions, yet the value of crypto transactions linked to illicit activity increased for a second year in a row, Chainalysis reported. Security professionals from Cybrsixgills Security Research suggest that this increase is likely the result of cybercriminals demanding higher amounts of crypto as the value of their personal assets begins to drop. Additionally, the disappearance of major players has forced cybercriminals to turn to sanctioned entities such as Garantex and others to withdraw cash, increasing their transaction volumes by more than 100,000 times in 2022, accounting for 44% illicit activities over the past year, Chainalysis said.

With the value of crypto declining, the volume of crypto transactions related to scams, ransomware, terrorist financing, and human trafficking plummeted as criminals turned to other activities. Instead, there has been an increase in attacks involving remote banking Trojans, malware designed to steal privileged credentials, phishing attacks, credit card harvesting and other attacks. seeking to grab conventional currency, notes email security firm Proofpoint.

[ad_2]