Criminal activity associated with digital assets has decreased by 20% since the beginning of the year, according to a new report from Chainalysis.
On August 15, the blockchain analysis company Chainalysis published the first part of its 2024 Crypto Crime Report. The document reveals a 19.6% decrease in illicit on-chain activity since the beginning of the year, dropping from $20.9 billion to $16.7 billion.
Increase in thefts and ransomware
Despite the reduction in illicit transactions, Chainalysis highlights an increase in fund theft and ransomware payments. Stolen funds have nearly doubled, from $857 million to $1.58 billion, while ransomware payments have increased by 2%, rising from $449.1 million to $459.8 million.
2024 could become the year with the highest revenues from ransomware payments. The average ransom payment for the most severe viruses has risen from $200,000 at the beginning of 2023 to $1.5 million by mid-2024. However, despite more frequent attacks, victims are paying ransoms less often.
The report shows an 80% increase in the average amount stolen per attack. This result is largely attributed to the rising price of Bitcoin and other cryptocurrencies. Unlike in previous years, hackers are increasingly targeting centralized exchanges, using advanced social engineering tactics.
Chainalysis also reports that inflows to services considered risky, such as mixers and exchanges that do not require KYC, have increased compared to the same period the previous year.
Following the release of the report, Eric Jardine, Cybercrimes research lead at Chainalysis, commented:
“It is highly encouraging to see that criminal activity continues to become an ever-shrinking share of the crypto ecosystem. The growth of legitimate activity outpacing that of illicit activity on-chain demonstrates the continued transition of cryptocurrencies to the mainstream.”
