Your Mid-Year Crypto Crime Update
A recent report from Chainalysis revealed a decline in overall illicit cryptocurrency transactions in 2024. While the total illicit crypto transactions dropped by almost 20%, specific criminal activities within the sector have surged, including hacking and ransomware attacks. Let’s explore the key findings from the report to help you stay informed about the evolving landscape of crypto crime this year.
Spot Bitcoin and Ether ETFs Fuel Legitimate On-chain Activity
The adoption of spot Bitcoin and Ether exchange-traded funds (ETFs) in the United States has driven legitimate on-chain activities, overshadowing illicit operations. However, this surge in legitimate activity has not deterred specific types of crypto-related crimes, such as hacking and ransomware attacks. Here’s a closer look at the rise in these criminal activities:
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Stolen Funds Through Hacking
- Hacking incidents have increased, leading to a substantial rise in the value of stolen assets.
- The cumulative value of stolen cryptocurrencies reached $1.58 billion by July 2024, an 84% increase from the previous year.
- Despite only a slight increase in the number of hacking incidents, the average value stolen per hack surged dramatically.
- Ransomware Attacks
- Ransomware attacks have intensified, with a record-breaking $75 million crypto payment to the Dark Angels ransomware group in July.
- The average size of ransomware payments experienced a significant increase compared to previous years.
Hackers Target Centralized Exchanges
Another concerning trend highlighted in the report is hackers shifting their focus from decentralized exchanges (DEXs) to centralized exchanges (CEXs) in 2024. This change in strategy has resulted in notable incidents, such as the attack on the Japanese DMM exchange, which accounted for a significant portion of the total value stolen this year. Here are some key points to consider:
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Centralized Exchanges
- Hackers targeted centralized exchanges, leading to substantial losses in the crypto sector.
- The attack on the DMM exchange represents a significant portion of the total value stolen through hacks this year.
- Ransomware Payments
- The rise in ransomware attacks has resulted in larger payments, with a substantial increase in the average size of transactions compared to previous years.
Hot Take: Stay Informed, Stay Safe!
As the crypto landscape continues to evolve, it’s essential to stay informed about the latest trends and developments in crypto crime. By understanding the key findings from reports like the Chainalysis mid-year update, you can protect yourself and your assets from potential threats in the digital asset space. Remember, knowledge is power when it comes to navigating the world of cryptocurrencies!
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