Crypto market faced a $14 billion loss in 2021 because of crypto crime
The research found that total crypto-related crimes in the crypto industry grabbed around $14 billion.
Despite the huge volatility in the price of crypto assets, adoption is surging over year by year. But with the adoption, bad actors are entering this industry and they are taking advantage of anonymity through blockchain-based illegal transactions and illicit activities.
Chainalysis is a blockchain analytic security firm. This firm did research and collected all the data on how much loss took place in this crypto industry because of bad actors’ involvement.
According to the report of Chainalysis, this year crime rate hitted an all-time high that ruined a total of $14 billion from this industry in 2021.
Crypto-associated illicit crypto transactions surged by more than 79% in 2021 over 2020. While the amounts of funds transactions surged by 550% in the same time interval.
However, the contribution of the volume of illicit crypto-related transactions in the whole crypto industry blockchain fund transaction hitted very low, with a total of 0.15%, which is a 126% plunge in the contribution of the total volume of illicit crypto transactions over the whole crypto space transactions.
The firm noted that a surge in the number of illegal crypto activities related to funding with $18 billion, may force the government authorities to take more strict rules and regulations against the crypto industry.
The most important thing that the Firm noted is that the surge in crime rate in the crypto space was more centred with the decentralized Platforms over Centralized Platforms.
On one side centralized exchanges were involved in illicit crypto-related transactions with a total of 82%, on the other hand, Defi contributed 516%.
These data are based on the crime and hacking of crypto assets funds.
The total crypto scam took place with a total of around $7.8 billion loss, which includes only $2.8 billion from rug pools scam methods.
A very strange thing that Chainalysis revealed is that current illicit activities associated and linked addresses are holding a total of $10 billion worth of crypto assets. And the majority of them are stolen from exchanges.
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