Recent statistics have revealed a substantial decrease in crypto crimes, marking a notable shift where they decreased by 65%. According to a comprehensive report published by the International Cybersecurity Institute (ICI), crypto crimes have seen a remarkable decline when compared to the previous year, 2022. This encouraging trend highlights the combined efforts of heightened security measures and regulatory actions to combat illicit activities in the crypto space.
Crypto Market Rebounds and Criminal Activities Plummet: A Promising Start to 2023
The turbulent year of 2022 witnessed the downfall of prominent crypto and blockchain companies, a barrage of fraudulent news, and volatile market conditions resulting from stricter economic policies. However, the first half of 2023 brought a respite for digital assets like Bitcoin, with an impressive surge of over 80% in value. This period also witnessed a notable decline in crypto-related criminal activities, restoring market confidence. Data from blockchain analytics firm Chainalysis reveals Crypto crimes decreased by 65% compared to the corresponding period in the previous year.
The report not only highlights the profitability of fraud as the most lucrative avenue for cybercriminals in crypto-based crimes but also delves into the assessment of illegal earnings derived from fraudulent activities. The findings reveal a staggering 77% decline in revenues generated by crypto scammers during the first half of 2023, plummeting from $3.3 billion to $1.1 billion. The report further emphasizes that fraud revenues in 2022 were lower than those of 2021, indicating a consistent downward trajectory in fraudulent earnings over the past two years.
Kafkas Sönmez, the Country Manager of Gate.io Turkey, provided his analysis, stating, “Recovery periods typically involve a restoration of investor confidence, leading to a greater willingness to take risks. Remarkably, during the first half of 2023, despite such a phase, we observed a reduction in losses attributed to crypto fraud. This departure from the historical trend of decreasing fraud revenues amidst increasing market enthusiasm is significant.”
The prevalence of ransomware is on the rise
The semi-annual assessment of crypto crimes emphasized the alarming surge in ransomware attacks as the most prominent form of cryptocurrency-based criminal activity in 2023. The report indicated that malicious actors resorting to extortion tactics, threatening organizations and individuals with the exposure of their personal data on illicit platforms, have amassed a staggering $449.1 million in illicit earnings since the start of the year.
Highlighting the approaching milestone of achieving the second-highest annual revenue from ransomware attacks, Kafkas Sönmez commented, “The company’s February report indicated a decline in ransomware-related crypto crimes throughout 2022. However, the recent market recovery, coupled with macroeconomic policy uncertainties and the restoration of investors’ confidence, has emboldened ransomware attackers. This heightened risk environment poses significant challenges, particularly for smaller cryptocurrency and blockchain enterprises.”
The need for trustworthy cryptocurrency exchanges is set to witness a surge
Kafkas Sönmez, the Country Manager of Gate.io Turkey, emphasized that crypto investors in 2023, following a challenging 2022, prioritize avoiding losses and exhibit caution in their choice of intermediaries, exchanges, and investment tools. They seek transparent and secure platforms that ensure the protection of their data and funds. Gate.io addresses these concerns by implementing multiple layers of security measures, including a proprietary trading system, third-party cloud security defense services, an encrypted transport layer, DDoS attack protection infrastructure, and a strong emphasis on DNS security.
Apart from robust system security, Gate.io ensures a safe trading environment for its vast user base of over 13 million registered users through meticulous internal control processes and authorization policies implemented during development. With seamless daily transactions exceeding $4 billion across over 1,700 cryptocurrencies, Gate.io also provides round-the-clock customer support infrastructure, catering to the needs of its users in Turkey.
The crypto landscape has experienced a significant decline in crypto crimes and fraudulent activities in the first half of 2023, with crypto crimes decreasing by 65%, indicating positive progress for the industry. With increased security measures, stricter regulations, and collaborative efforts between stakeholders, investor confidence has been restored. However, as the market evolves, ongoing vigilance and proactive measures will be crucial to maintain the integrity and security of cryptocurrencies in the future.