Why there has been a decline in crypto fraud
- Fall in crypto price led to fall in crypto fraud
- Over $ 7 billion lost on crypto fraud in 2021.
- Scammers continue to try evolving techniques in cryptocurrencies.
Kim Grauer, research director at the cryptanalysis firm Chainalysis, has recently explained that the price crash in the crypto market has led to a fall in the number of crypto scams, with fewer funds stolen since the market fell.
In a recent interview with Yahoo Finance, the director said there had been a “withdrawal” in funds received by cryptocurrency fraud addresses under the bear market. According to data from Chainalysis, crypto fraud has achieved far less for criminals this year, especially after the fall in prices compared to 2021.
“Of all types of illegal activity … scams tend to move the most with the market,” @kjedeanalyse Research director Kim Grauer says about crypto fraud, and adds: “You can compare it to something like ransomware where there is not really a market base.” pic.twitter.com/zuGAZUnNz3
– Yahoo Finance (@YahooFinance) July 7, 2022
Scammers collected as much as $ 7.7 billion from cryptocurrencies last year when Bitcoin, Ethereum and Binance Coin, among many others, reached their high prices through the ages. However, the crypto market is facing a setback from that time, leading to a fall in attempts to hack it.
Grauer, during her interview, explained that although crypto fraud is still in trend in the industry, he noted this year that hacks tend to expand and shrink along with the broader crypto market.
“Of all the illegal activities … scams tend to move the most with the market,” she said.
The entire crypto market is currently valued at less than 1 trillion dollars, a sharp decline from the top of 3 billion dollars in November last year. A number of factors drove the declines – a mix of crypto-specific events and broader macroeconomic problems – and some of them will also continue to hang over the market this week.
Crypto-fraud, a course of evolving techniques
From time to time, regardless of whether the crypto market grows or is in its spare time, hackers and scammers continue to try evolving techniques to pose new threats to the industry.
Over the past five years, cryptocurrency romance scams and business / government scammers have raised more than $ 1.3 billion from victims.
Investment fraud is still the most common and profitable in the industry. One of these was in October last year when an anonymous party claiming to be affiliated with the popular Netflix series “Squid Game” pumped “Squid Game Token”. After increasing the value of the token by 110,000% in five days, investors were finally pulled behind while the founders disappeared with barely a word.
