• Chainalysis released a report indicating crypto crime hit an all-time high of $20.6 billion in 2022.
• The report attributed this increase to sanctioned activity and hacking.
• Kim Grauer, head of research at Chainalysis, stated that the bear market brought on certain types of crimes.
Crypto Crime Soars to All-Time High
Chainalysis, a blockchain sleuthing firm, recently revealed that crypto crime reached an all-time high of $20.6 billion worth of blockchain transactions in 2022. This was according to their findings which were presented by Kim Grauer, the firm’s head of research, who stated that the bear market brought on certain types of crimes.
Sanctioned Activity and Hacking Drive Increase
The Chainalysis report further indicated that criminal activity accounted for 0.24% of all blockchain transactions last year; an increase from the year before (0.12%). In particular, sanctioned activity and hacking were identified as the driving forces behind the rise in illicit transaction volumes last year; with roughly $3.8 billion stolen from crypto businesses alone.
OFAC Crackdown on Crypto Platforms
In 2021, the U.S Treasury Department’s Office of Foreign Assets Control (OFAC) began to crack down on crypto platforms rather than singling out individual bad actors through their addresses – leading to increased scrutiny across these platforms for any suspicious activities taking place on them. This resulted in better enforcement measures which have led to a decrease in other forms of illicit activity while sanctioned activity and hacking saw a significant spike instead.
Crypto Crime is Still Small Share
Despite hitting an all-time high last year, it is important to note that crypto crime still accounts for only a small portion (less than 1%) of total volume when it comes to blockchain transactions globally – making it far less prevalent than incidents involving traditional currency or banking services related crimes such as money laundering or fraud schemes targeting individuals or businesses alike online or offline..
Conclusion
Overall, Chainalysis’ findings from their latest report reveals just how much potential there is for cryptocurrencies when it comes to global commerce but also highlights its drawbacks if left unchecked – making it clear why regulations and enforcement measures are needed for these digital assets in order to ensure safety and security across exchanges worldwide going forward into the future..