Report: Cryptocurrency crime hit a record high of US $20.6 billion in 2022

It is reported that according to a new report from the blockchain research company Chainalisis, the value of cryptocurrency crimes in blockchain transactions reached a record $20.6 billion in 2022. Kim Grauer, the research director of the company, said on Monday that although other forms of illegal activities may be on the decline, “there are two categories that really stand out in terms of growth: sanctioned activities and hacker attacks”. According to the Chainalisis report, criminal activities accounted for 0.24% of all blockchain transactions last year, an increase of 0.12% over the previous year.

Interpretation of this information:

A new report from Chainalysis, a blockchain research company, reveals that cryptocurrency crimes in blockchain transactions hit a record high of $20.6 billion in 2022. This shows an increase in criminal activities by 0.12%, accounting for 0.24% of all blockchain transactions. The report also suggests that sanctioned activities and hacker attacks are among the top two reasons for the growth in criminal activities. While other types of illegal activities may be decreasing, sanctioned activities and hacker attacks remain on the rise. The report implies that governments around the world need to invest more in security operations to curb the rise of digital crimes.

Cryptocurrency has become a popular investment vehicle for many people due to its potential for massive returns on investment. However, the lack of regulations surrounding these digital currencies has made them an attractive target for hackers and cybercriminals. The Chainalysis report indicates that the rise in cryptocurrency crimes is due to sanctioned activities and hacker attacks.

Sanctioned activities refer to countries that have been placed under embargo or have been sanctioned for various reasons, including their association with terrorism. The report implies that these countries may turn to cryptocurrency as a way to escape the limitations placed on their use of fiat currencies. Moreover, China’s recent ban on cryptocurrency mining has pushed many miners to other countries with lower regulations, where they have engaged in unauthorized mining activities.

The report also points out the rise in hacker attacks as another factor contributing to the increase in cryptocurrency crimes. Hackers around the world have been targeting crypto exchanges, wallets, and other platforms, stealing millions of dollars’ worth of cryptocurrency. This further highlights the need for increased investment in cybersecurity to prevent these types of attacks.

In conclusion, the Chainalysis report reveals that the value of cryptocurrency crimes in blockchain transactions reached a record of $20.6 billion in 2022, with sanctioned activities and hacker attacks being the two key drivers. Thus, governments worldwide need to invest more in cybersecurity to prevent further digital crimes.