TRM Labs Report: Illicit Sums Lost to Bad Actors in the Crypto Space
TRM Labs, a leading blockchain analysis firm, has released a comprehensive report on the illicit sums lost to bad actors in the crypto space in 2022. Despite the declining prices and interest in the market, the figures are quite notable.
Key Points:
1. Improved Cybersecurity Measures: Despite the decline in digital asset value, the number of scams and thefts in the industry has not significantly decreased. In 2021, over $12 billion were lost to DeFi exploits, while $3.7 billion were lost in 2022. However, the $12 billion represents a sevenfold increase from the prior year, making 2022 an outlier.
2. Exploits Targeting Infrastructure: In 2022, $3.7 billion was stolen across 175 incidents, with an average loss of $20 million per exploited project. While smart contracts improved, only 10% of cyberattacks were protocol exploits, with the remaining 90% targeting the platforms’ infrastructure.
3. Investors Still Enticed by Illicit Platforms: In 2022, the crypto community lost over $9 billion to scams, pyramid schemes, romance frauds, and phishing attacks. Fraudulent investment platforms and tokens doubled in 2022, resulting in $2.57 billion outright stolen from investors worldwide.
4. Pyramid Schemes: Pyramid schemes accounted for the majority of ill-gotten gains, with about $7.8 billion disappearing overnight. The top 10 schemes made up 54% of the total take, with Forsage, Trade Coin Club, and Bitconnect being the largest collapses.
5. TRON Network Involvement: About 40% of pyramid schemes in 2022 took place on the TRON network, primarily involving USDT. Illicit markets generated around $1.5 billion in revenue for bad actors, significantly less than outright fraud.
Hot Take:
The TRM Labs report highlights the persistent issue of illicit activities in the crypto space, with cybercriminals adapting to improved cybersecurity measures. Investors must remain vigilant and cautious when engaging with platforms and tokens, as the losses incurred in 2022 demonstrate the ongoing risks associated with the industry.
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