Crypto Fraud – Matter Of Concern !!

The fraud related with cryptocurrency has become a major topic of discussion for the government enforcement parties, trying to address its various forms. Where, Crypto fraud is actually interlinked with the crypto wallets and the scammers make investors indulge in such a fraud by asking them to pay in cryptocurrency for right to recruit others in a program and the more one pay’s in cryptocurrency, the more money is being promised to be made by the investor investing money. This how the scammers trap the innocent investors in crypto fraud as all such promises are fake and guarantees are also false.
In terms of volume, the crime which is linked with cryptocurrency has recorded a large number, previous year, with regards to value, having illegal addresses which get $14billion in digital currencies to a hike of 79% from $7.8 billion in 2020, when referred to certain blog from blockchain analysis firm Chainalysis being released on Thursday.
With the start of 2022, Chainalysis had mentioned about the illegal addresses which were having hold of $10 billion cryptocurrencies, having maximum out of this, the wallets which were so linked with the theft associated with crypto. Where, illegal addresses are denoted by wallets which are associated with criminal activities as ransomware, Ponzi scams and schemes.
Therefore, illegal activities, share of total crypto transaction volume had been low to 0.15% in 2021, where a sum of transaction volume had gone to $15.8 trillion by the previous year, and a hike of above 550% from 2020 levels. In addition to this, further analysis of the firm Chainalysis expected 0.15% rise as firm had found many addresses linked with illegal transactions and have fitted them in lot volume.

Major Findings Of Chainalysis

The last crypto crime report of the firm entails details mentioning 0.34% of 2020’s crypto transactions which were linked with illegal activity, but the number had now gradually moved up to 0.62%.
Chainalysis was firm in saying that criminal abuse of cryptocurrency had created huge hindrance for a smooth continued adoption, increased the limit of restrictions which are enforced by government and the most corrupt part of it is to victimise the innocent people involved in crypto round the globe.
With the exception of 2019 had brought to notice that an extreme outlier year for crypto crime was basically due to multibillion dollar Plus Token Ponzi Scheme– this explained that basically crime had become a small portion of cryptocurrency world.
In addition to this, the report had mentioned about the rise of decentralised finance or DeFi, which rendered crypto denominated lending outside traditional banking and this has become major reason for rise in stolen funds and scams as well.

Findings Of 2020

It was found that less than $162 million worth of cryptocurrency was taken from DeFi base and this came out to be 31% of the year’s total amount stolen and this described 335% raise on total stolen from the DeFi base in 2019.

2021 Figures

This figure had a hike of 1,330% to about $2.3 billion, according to Chainalysis data in 2021. The Defi transaction volume also had went to an increase of 912% in 2021 and Chainalysis have mentioned about the gains which are outsized on decentralised tokens as the one like Shiba Inu have moved investors towards being speculative on Defi tokens. To this, hike in Defi linked crimes is but known example of the manner in which criminals tend to ruin latest technologies, as per Kim Grauer (Head of Research at Chainalysis).
This year as Defi started growing, huge increase in Defi protocols was recorded and being used for laundering money, where Defi protocols have been the suggested victim of crime as the popular one being hacking.
In addition to manipulating the markets, the crypto thefts as discussed, hack the investors crypto wallets and steal their currency and could also involve in setting up fake wallets, which results in stealing their currencies.
Therefore, before investing with crypto just be aware of the crypto hacks and invest only after doing proper homework on the chosen cryptocurrency.

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