Revenue from crypto related crime has fallen 65% in the first half of 2022 compared to the same period last year, a report by Chainalysis has found.
According to Chainalysis, the total revenue for crypto crime in H1 stood at $1.6bn, while the number of transfers made to illicit crypto scams is at its lowest for four years.
The biggest scam of 2022 so far has only brought in $273m, which is less than a quarter of the revenue gained from the largest scam in the first half of 2021.
The fall in crypto crime figures has coincided with a drop in crypto values. However, some forms of crypto-crime have risen in the last year, such as the value of stolen or hacked crypto assets, which has increased from $1.2bn to $1.9bn.
Chainalysis cybercrime research lead Eric Jardine said that there is ‘still much more work to be done’ despite the apparent drop in overall cybercrime.
He added, “With huge increases in stolen funds, we can’t afford to rest on our laurels. The public and private sectors must continue to work together and hone their ability to fight cryptocurrency-based crime.”
The United Nations Conference on Trade and Development (UNCTAD) recently called for the halt of crypto rising in developing countries.
It has issued three policy briefs that explore the risks and costs, including the threats cryptocurrency poses to financial stability, domestic resource mobilisation and the security of monetary systems.
The body added that while private digital currencies have rewarded some and enabled remittances, they are an unstable asset that bring social risks and costs, it said.
Its first policy is titled ‘All that glitters is not gold: The high cost of leaving cryptocurrencies unregulated’. This explores the reasons cryptocurrencies have been adopted so rapidly in developing countries, including their facilitation of remittances and a hedge against currency and inflation risks.
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