NEW DELHI: Cryptocurrency-based crime hit an new all-time high in 2021, with illicit addresses receiving $14 billion over the course of the year in digital currencies, up 79% from $7.8 billion in 2020 largely due to the rise of decentralized finance (DeFi) platforms, according to blockchain analysis firm Chainalysis.Illicit addresses are wallets tied to criminal activities such as ransomware, Ponzi schemes, and scams.
As of early 2022, illicit addresses hold at least $10 billion worth of cryptocurrency, with the vast majority of this held by wallets associated with cryptocurrency theft. Addresses associated with darknet markets and with scams also contribute significantly to this figure.
However, as a percentage of cryptocurrency transaction volumes, the share of fraudulent transactions shrank to a record low of 0.15 percent in 2021 despite the raw value of illicit transactions touching its highest-level ever. Scamming was the greatest form of cryptocurrency-based crime in 2021, followed by theft.
As of early 2022, illicit addresses hold at least $10 billion worth of cryptocurrency, with the vast majority of this held by wallets associated with cryptocurrency theft. Addresses associated with darknet markets and with scams also contribute significantly to this figure.
However, as a percentage of cryptocurrency transaction volumes, the share of fraudulent transactions shrank to a record low of 0.15 percent in 2021 despite the raw value of illicit transactions touching its highest-level ever. Scamming was the greatest form of cryptocurrency-based crime in 2021, followed by theft.
Across all cryptocurrencies tracked by Chainalysis, total transaction volume grew to $15.8 trillion in 2021, up 567% from 2020’s totals.
“Given that roaring adoption, it’s no surprise that more cybercriminals are using cryptocurrency. But the fact that the increase was just 79% — nearly an order of magnitude lower than overall adoption — might be the biggest surprise of all. In fact, with the growth of legitimate cryptocurrency usage far outpacing the growth of…
