The new Chainalysis Investigation has lost $ 7.7 million this year in scams worldwide by DailyCoin

As a preview of the 2022 Crypto Crime Report, Chainalysis launched its blockchain data platform in February. At first glance, fraud remained the main form of cryptocurrency-based crime in terms of transaction volume. That volume stole more than $ 7.7 billion from victims worldwide.

A total of $ 7.7 billion represents an 81% increase over 2020, a significant drop in fraud activity compared to 2019. One change that helped increase fraudulent revenue in 2021 was the creation of carpet kicks.

This type of fraud is relatively new and the most common is in the space of decentralized finance (DeFi). A “carpet pull” is basically when the developers of a new cryptographic project accidentally leave it, taking users ’funds with them. This nasty maneuver “pulls the carpet out” from under the investors, hence the name. The investigation also found that crypto-criminals are developing tactics.

The average duration of a financial fraud is getting shorter and shorter. The average financial fraud was active for 70 days in 2021, less than 192 in 2020. In retrospect, the average cryptocurrency scam was active in 2,369 days in 2013. This number has been steadily declining ever since. One reason for this may be that investigators are improving in solving and prosecuting fraud. As scammers become aware of these actions, they may feel more pressure to close the store before attracting the attention of regulators and law enforcement.

As the duration of fraud declines, the number of active cryptocurrencies is growing at any given time. An active scam defined by the Chainalysis report is where the “black hat” crypto addresses are receiving funds. These numbers of active frauds have risen significantly this year, from 2,052 to 3,300 in 2020, an increase of 40% in less than a year.

Finally, scams are common and are commonly known as waves of sustained price growth in popular cryptocurrencies, and usually also affect the influx of new users.

No investigation is needed to find out that hack attacks and cryptocurrencies create a major obstacle to the successful adoption of cryptocurrencies, and fighting them cannot be left to law and regulators alone. Cryptocurrency companies, financial institutions, cryptographic exchanges, and the media have an important role to play in educating and informing. Investors ultimately need to take responsibility for their own crypto education and investment actions; otherwise, the funds they invest will not be theirs for long.

MAGAZINE WOMAN

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