Illicit Crypto Transactions Worth $70 Billion: A Five-Year Overview of Fraud in the Cryptocurrency Market

Illicit Crypto Transactions Worth $70 Billion: A Five-Year Overview of Fraud in the Cryptocurrency Market


Fraud on the Rise: Cryptocurrency Market Documents Nearly $70 Billion in Illegal Transactions

According to AltIndex.com, the cryptocurrency market has witnessed illegal transactions totaling nearly $70 Billion in the previous five years. Regardless of a short-term decline in market conditions, illicit activity in the digital currency sector has continued to grow for the Second consecutive year.

The Battle of Regulation: Fraud on the Rise in the Cryptocurrency Sector

In 2021 and 2022, there was a whole lot of increase in illicit activity in the cryptocurrency market. The total volume of illicit transactions more than doubled from $18.1 Billion in 2020 to $20.6 Billion in 2022, marking the highest value in the history of this market. These illicit transactions include theft, fraud, ransomware extortion, human trafficking, terrorist financing, and dark net market activities.

The Increasing Number of Sanctioned Entities

Alongside the rise in illicit activities, there has been a whole lot of increase in the number of sanctioned entities and addresses involved in the cryptocurrency world. In 2018, the United States Treasury Department’s Office of Foreign Assets Control (OFAC) imposed sanctions on two Iranian nationals associated with ransomware. Over time, OFAC switched from sanctioning individuals to complete cryptocurrency services. This change led to an increase in the number of addresses associated with each sanctioned entity, reaching 35 in 2022.

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Scams as the Main Source of Revenue

Data collected by Chainalysis outlines that scams have been the primary source of revenue for cryptocurrency-related criminal activities in the previous five years. These scams are followed by operations related to stolen funds and darknet markets.

Hot Take: The Cryptocurrency Market Battles Growing Fraud

The cryptocurrency market is facing an uphill battle against fraud and illicit activities. Regardless of efforts to regulate the sector, the volume of illegal transactions continues  to increase. Sanctioned entities and addresses likewise pose a whole lot of challenge in combating crypto-related criminal activities. Scams remain a major source of revenue for criminals in this space. As the market evolves, it is critical for regulators and industry players to implement stricter measures to protect investors and secure the integrity of the cryptocurrency market.

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Leo Nomist emerges as a maestro harmonizing the roles of crypto analyst, tenacious researcher, and editorial virtuoso, creating an unparalleled symphony of insight. Amidst the intricate world of digital currencies, Leo’s perspectives resonate like finely tuned chords, capturing the attention of curious minds from diverse horizons. His talent for deciphering complex threads of crypto intricacies blends seamlessly with his editorial finesse, translating intricacy into a captivating composition of understanding.

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