Chainalysis Crypto Crime Report 2024 highlights trends and threats

2023 saw an over 50% decrease in funds stolen from crypto platforms compared to 2022

In 2023, the world of cryptocurrency witnessed significant shifts in criminal activity, according to the latest Chainalysis Crypto Crime Report.

The 114-page report reveals notable trends and developments across various aspects of crypto crime.

One major highlight is the decrease in funds stolen from crypto platforms, which fell by over 50% compared to the previous year. Despite this drop, the number of hacking incidents actually increased, indicating a persistent threat to the security of crypto platforms.

A significant factor contributing to the decrease in stolen funds was the decline in DeFi hacking. DeFi protocols, which enable decentralized financial transactions, saw a notable reduction in the value stolen from them.

However, notable hacks still occurred, including a flash loan attack on Euler Finance and multiple exploits on platforms like Mixin Network and CoinEx.

The report also sheds light on the rise of cybercriminal activity affiliated with North Korea. Despite stealing less in total compared to the previous year, North Korean hackers executed more individual crypto hacks in 2023.

Their targets included DeFi platforms, centralized exchanges, and wallet providers. Notably, they were also responsible for the $41 million stolen from crypto gambling platform Stake.com.

Darknet markets, another hotspot for crypto crime, experienced a slight increase in revenues in 2023. However, they have yet to reach the levels seen before the closure of the Hydra Marketplace in 2022. The battle for dominance among darknet markets continued in 2023, with Mega Darknet Market and Kraken Market emerging as significant players.

One notable aspect of darknet market operations is their specialization in specific niches, such as drug sourcing and cybercriminal enablement, which means that these markets provide a platform for various illicit activities, including the sale of drugs and stolen data.

Law enforcement efforts also played a crucial role in combating crypto crime. Operations like Operation Cookie Monster targeted fraud shops like Genesis Market, which facilitated the sale of stolen data and personal information. The closure of Genesis Market marked a significant milestone in the fight against darknet market activities.

Looking ahead, experts emphasize the importance of continued monitoring and enhanced security measures to mitigate the risks associated with crypto crime.

Overall, the 2024 Crypto Crime Report provides valuable insights into the evolving nature of crypto crime and underscores the need for proactive measures to safeguard the integrity of the crypto ecosystem.

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Written by Silvia Pavlof

Silvia has explored various forms of writing, ranging from content creation for social media to crafting movie scripts. Drawing on her experience as a journalist specializing in the gambling sector, she is currently investigating the impact of cryptocurrencies and blockchain on traditional gambling and iGaming.

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