Crypto crimes are raking in far less revenue this year due to a dry-up among hacks and scams, according to a mid-year report from Chainalysis, which tracks illicit wallet addresses. Through the end of June, the industry’s total losses to illicit actors had fallen 65% relative to mid-2021, while legitimate actors experienced a much less severe drop in inflows during the sluggish bear market.
Two of the biggest operations – VidiLook and Chia Tai Tianqing Pharmaceutical Financial Management, both of which exit-scammed investors to whom they promised lofty returns – disappeared, and have not been replaced in spite of Bitcoin’s 83% rally year-to-date. Impersonation scams, however, are duping nearly 50% more people this year than last, resulting in only a 23% drop-off in overall inflows for scammers who pose as authority figures.
Ransomware attackers are far outpacing their 2021 haul, with nearly $450 million extorted so far. Attackers are finding success across the board by infecting big and small organizations with targeted ransomware as well as less sophisticated spray and pray packages.