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Chainalysis: Crypto Scam Revenue Dropped 46% in 2022

News Feed - 2023-02-21 02:02:43

Chainalysis: Crypto Scam Revenue Dropped 46% in 2022


Revenue from cryptocurrency scams dropped 46% in 2022, according to blockchain data analytics firm Chainalysis. “We attribute most of this decline to market conditions, as scam performance tends to worsen when cryptocurrency prices are in decline,” the firm explained. ‘Crypto Scam Revenue Fell Significantly in 2022’


Blockchain data analytics firm Chainalysis published its 2023 Crypto Crime Report last week with a section on crypto scams. “Crypto scam revenue dropped 46% in 2022,” the 109-page report reads, elaborating: Crypto scam revenue fell significantly in 2022, from $10.9 billion the year prior to just $5.9 billion.


Chainalysis tracks several types of crypto scams, including giveaway scams, impersonation scams, investment scams, non-fungible token (NFT) scams, and romance scams.


Noting its numbers are “a lower-bound estimate,” the blockchain analytics firm explained that “estimates of the true amount lost to fraudsters will grow as we identify more addresses associated with scams.” The firm specifically mentioned “pig butchering” scams which have become alarmingly popular. The Federal Bureau of Investigation (FBI) has warned about this type of crypto scam many times. Last November, U.S. authorities seized seven domains used by pig butchering scammers. Yearly crypto scam revenue from 2017 to 2022. Source: Chainalysis.


Regarding the decline in crypto scam revenue, Chainalysis detailed: We attribute most of this decline to market conditions, as scam performance tends to worsen when cryptocurrency prices are in decline.


“Cryptocurrency scam revenue began the year trending upwards, but plummeted in early May — the same time the bear market set in following the collapse of Terra Luna — and then declined steadily throughout the rest of the year,” Chainalysis described.


While noting that “some types of scams see revenue changes increase as crypto asset prices decrease,” the blockchain analytics firm pointed out: “Scam revenue throughout the year tracks almost perfectly with bitcoin’s price, consistently maintaining a three-week lag between price moves and changes in revenue.” Tags in this story Chainalysis, Chainalysis crime report, Chainalysis scam report, crypto scam revenue, Crypto Scams, cryptocurrency scam revenue, cryptocurrency scams


What do you think about cryptocurrency scam revenue dropping 46% last year? Let us know in the comments section below. Kevin Helms


A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. US State Regulator Launches Crypto Scam Tracker FEATURED | 5 hours ago Crypto Hedge Fund Galois Capital Shuts Down — "We Lost Almost Half Our Assets to FTX Disaster" FEATURED | 9 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleUS State Regulator Launches Crypto Scam Tracker Next articleTech Giant Globant Believes the Metaverse Will Have Its Make or Break Moment in 2023 Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItFidelity Investments Launches Crypto, Metaverse ETFs — Says "We Continue to See Demand"


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