Crypto Scam Revenues Drop 46% in 2022 – Featured Bitcoin News

According to that Blockchain-Data analytics firm Chainalysis saw cryptocurrency fraud revenue fall 46% in 2022. “We attribute most of this decline to market conditions, as fraud performance tends to deteriorate when prices for cryptocurrencies decrease,” the company said.

‘Crypto fraud revenue fell significantly in 2022’

Blockchain data analytics firm Chainalysis released its Crypto Crime Report 2023 last week with a section on crypto scams. “Crypto scam revenue fell 46% in 2022,” the 109-page report states, which elaborates:

Crypto scam revenue dropped significantly in 2022, from $10.9 billion the year before to just $5.9 billion.

Chainalysis tracks various types of crypto scams including giveaway scams, identity scams, investment scams, non-fungible token scams (NFT) and romance scams.

Noting that its numbers are “a low estimate,” the blockchain analytics firm stated that “estimates of the true amount lost to scammers will increase as we identify more addresses associated with fraud.” The company specifically mentioned “pig slaughter” scams, which have become alarmingly popular. The Federal Bureau of Investigation (FBI) has warned many times about this type of crypto scam. Last November, US authorities seized seven domains used by scammers to slaughter pigs.

Regarding the decline in crypto scam revenue, Chainalysis stated the following:

We attribute most of this drop to market conditions, as scam performance tends to deteriorate when cryptocurrency prices fall.

“Cryptocurrency scam revenue started the year on an uptrend but collapsed in early May – at the same time as the bear market after the collapse of Terra Luna – and then declined steadily for the remainder of the year,” Chainalysis described.

The blockchain analytics firm pointed out that “for some types of scams, revenue increases when crypto asset prices fall,” the blockchain analytics firm pointed out: “Scam revenue is almost perfectly aligned with price year-round from Bitcoin while maintaining a three-week lag between price movements and sales changes”.

What do you think of the 46% drop in cryptocurrency fraud revenue over the past year? Let us know in the comment section below.

Kevin Helms

As an Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the interface between economics and cryptography.

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