Crypto Scam Revenue Down 77% Year-on-Year, but Ransomware Surges in the First Half of 2023: Chainalysis

A new report from blockchain data platform Chainalysis shows that cryptocurrency-related crimes significantly dropped in the first half of 2023.

Scams, which tend to pull in the most money among crypto crimes, saw a 77% decline in revenue compared to the same period last year.

Through June, crypto scammers made nearly $3.3 billion less than in 2022 and just over $1 billion in 2023.

The decline comes amid rising prices of digital assets as Bitcoin (BTC) and other cryptocurrencies recover from the losses in 2022. The report says the drop in revenue is primarily due to the sudden disappearance of two large-scale scams, VidiLook and Chia Tai Tianqing Pharmaceutical Financial Management.

“Usually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO (fear of missing out) make victims more susceptible to scammers’ pitches. But 2023’s drastic scam decline bucks that long-standing trend.”

Meanwhile, ransomware is surging despite the overall positive trend. It is the only form of cryptocurrency-based crime expected to grow this year as attackers managed to extort $175.8 million more than they did during the same period in 2022.

The increase in ransomware revenue represents a reversal of the downward trend seen in 2022. Chainalysis says the rebound is due to attackers preying on affluent victims.

“When we published our annual Crypto Crime Report in February, we were pleased to report that 2022 ransomware revenue had plummeted significantly compared to 2021. Why the reversal in fortunes? For one thing, big game hunting — that is, the targeting of large, deep-pocketed organizations by ransomware attackers — seems to have bounced back after a lull in 2022.”

 

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