Crypto-Related Crime Drops by 40% in 2023

By: Isha Das

The cryptocurrency market experienced significant positive growth in 2023, accompanied by a substantial decline in crypto-related scams and illegal activities, according to new data. Blockchain analysis firm, Chainalysis, released its Crypto Crime Report for 2024 revealing that the sum of illicit cryptocurrency transactions in 2023 dropped by 40%, accumulating to about $24.2 billion. This reduction is significant compared to the previous year's estimate of $39.6 billion.

A significant shift was noted in the type of assets involved in crypto crimes, with Bitcoin no longer being the most preferred for illegal transactions. On the contrary, stablecoins have gained popularity due to the overall growth in stablecoins' share of all crypto activity. However, Bitcoin continues to dominate in specific crimes such as darknet market sales and ransomware extortions.

Despite the overall decline in crypto scams, the report indicates a rise in revenues from ransomware and darknet markets. Furthermore, most illicit activities are driven by transactions involving sanctioned entities and jurisdictions, accounting for $14.9 billion worth of transactions. This represents a substantial 61.5% of all illicit transactions over the year.