Less instances of crypto fraud, but more crypto stolen

Crypto criminals remain as active as they have ever been but seem to be stealing more crypto, from fewer victims according to a report by Chainalysis.

The firm analyzed crypto trading volumes from the first seven months of the year, concluding that the number of legitimate transactions was down by 36%.

Illicit trading also went down by 15% over the same period, but this doesn’t mean the industry is doing well.

If anything, Chainalysis claims that criminals and illegal activities have proven to be more resilient in the face of the market-wide rout that has engulfed the sector since early June.

On the plus side, gains from cryptocurrency scams were down 65%, which can be attributed to the overall decline of the value of cryptocurrencies.

“One reason for this could be that with asset prices falling, cryptocurrency scams — which typically present themselves as passive crypto investing opportunities with enormous, promised returns — are less enticing to potential victims”, Chainalysis added.

The report noted that the number of novice cryptocurrency investors has also fallen, which means that there are fewer people to fall victim to cryptocurrency scams.

However, the number of stolen funds was not negligible with $1.9bn worth of cryptocurrency assets breached in hacks. This was still up from the $1.2bn stolen in the first seven months of 2021.

Then again, revenues generated on the darknet have also fallen significantly by an estimated 41% the company noted.

Overall, cryptocurrency and cyber criminals still prefer this medium of conducting their fraudulent operations.

However, they too have felt a decline in the overall number of victims, but not too badly, as criminals have been more successful this year, the report said.

To stay safe, remember not to fall for fraudulent schemes that are too good to be true or even consider using your crypto recreationally at 1xBit, FortuneJack and Bitcasino.io.

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Written by Barney

Co-founder

Barney is co-founder of CryptoGamblingNews.com. When not at work he can usually be found behind a Nikon. He's won numerous international competitions for his photography and volunteers as a content creator for aid organisations in Africa.

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