{"id":50083,"date":"2023-01-12T14:05:46","date_gmt":"2023-01-12T14:05:46","guid":{"rendered":"https:\/\/packetstormsecurity.com\/news\/view\/34213\/Crypto-Crime-Hits-Record-20-Billion-In-2022-Report-Says.html"},"modified":"2023-01-12T14:05:46","modified_gmt":"2023-01-12T14:05:46","slug":"crypto-crime-hits-record-20-billion-in-2022-report-says","status":"publish","type":"post","link":"https:\/\/www.threatshub.org\/blog\/crypto-crime-hits-record-20-billion-in-2022-report-says\/","title":{"rendered":"Crypto Crime Hits Record $20 Billion In 2022, Report Says"},"content":{"rendered":"
<\/div>\n

LONDON, Jan 12 (Reuters) – Illicit use of cryptocurrencies hit a record $20.1 billion last year as transactions involving companies targeted by U.S. sanctions skyrocketed, data from blockchain analytics firm Chainalysis showed on Thursday.<\/p>\n

The cryptocurrency market floundered in 2022, as risk appetite diminished and various crypto firms collapsed<\/a>. Investors were left with large losses and regulators stepped up calls<\/a> for more consumer protection.<\/p>\n

Even as overall crypto transaction volumes fell, the value of crypto transactions related to illicit activity rose for the second year running, Chainalysis said.<\/p>\n

Transactions associated with sanctioned entities increased more than 100,000-fold in 2022 and made up 44% of last year’s illicit activity, Chainalysis said.<\/p>\n

Funds received by the Russian exchange Garantex<\/a>, which was sanctioned by the U.S. Treasury Department in April, accounted for “much of 2022’s illicit volume”, Chainalysis said, adding that most of that activity is “likely Russian users using a Russian exchange.” A spokesperson for Chainalysis said wallets are tagged as “illicit” if they are part of a sanctioned entity.<\/p>\n

Garantex did not immediately respond to an emailed request for comment.<\/p>\n

The United States also imposed sanctions last year on cryptocurrency mixing services Blender<\/a> and Tornado Cash<\/a>, which it said were being used by hackers, including from North Korea, to launder billions of dollars worth of proceeds from their cyber crimes.<\/p>\n

The volume of stolen crypto funds rose 7% last year, but other illicit crypto transactions including those related to scams, ransomware, terrorism financing and human trafficking, saw volumes fall.<\/p>\n

“The market downturn may be one reason for this,” Chainalysis said. “We’ve found in the past that crypto scams, for instance, take in less revenue during bear markets.”<\/p>\n

Chainalysis said its $20.1 billion estimate only includes activity recorded on blockchain, and excludes “off-chain” crime such as fraudulent accounting by crypto firms.<\/p>\n

The figure also excludes when cryptocurrencies are the proceeds of non-crypto-related crimes, such as when cryptocurrency is used as a means of payment in drug trafficking, Chainalysis said.<\/p>\n

“We have to stress that this is a lower bound estimate – our measure of illicit transaction volume is sure to grow over time,” the report said, noting that the figure for 2021<\/a> was revised to $18 billion from $14 billion as more scams were discovered.<\/p>\n

Reporting by Elizabeth Howcroft
\nEditing by Tomasz Janowski<\/span><\/p>\n

Our Standards: The Thomson Reuters Trust Principles.<\/a><\/p>\n

\n
<\/a><\/p>\n
Elizabeth Howcroft<\/a><\/p>\n

Thomson Reuters<\/p>\n

Reports on the intersection of finance and technology, including cryptocurrencies, NFTs, virtual worlds and the money driving “Web3”.<\/p>\n<\/div>\n<\/address>\n<\/div>\n

READ MORE HERE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

READ MORE HERE…<\/p>\n","protected":false},"author":2,"featured_media":50084,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","footnotes":""},"categories":[277],"tags":[8592],"class_list":["post-50083","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cybersecurity-blogs","tag-headlinehackercybercrimefraudcryptography"],"yoast_head":"\nCrypto Crime Hits Record $20 Billion In 2022, Report Says 2026 | ThreatsHub Cybersecurity News<\/title>\n<meta name=\"description\" content=\"ThreatsHub Cybersecurity News | ThreatsHub.org | Cloud Security & Cyber Threats Analysis Hub. 100% Free OSINT Threat Intelligent and Cybersecurity News.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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