Chainalysis: Global crypto crime has fallen 19.6% YTD
Ransomware emerges as a notable exception
New research from Chainalysis, the blockchain analysis firm headquartered in New York City, reveals a significant drop in global crypto-related crime. Year-to-date (YTD) illicit activity has decreased by 19.6%, from $20.9 billion to $16.7 billion.
Despite the decline in illicit transactions, ransomware has emerged as a notable exception. Through mid-year 2024, the total ransoms paid have reached $459.8 million, surpassing last year’s $449.1 million.
This trajectory potentially positions 2024 to become the highest-grossing ransomware year on record. The most significant ransom payment ever recorded occurred this year, with a staggering $75 million paid to the Dark Angels ransomware group. This figure represents a 96% increase from 2023 and a 335% rise from 2022.
Another troubling trend is that the value of stolen crypto assets surged in 2024, reaching $1.58 billion—an 84.4% increase from last year. While the number of hacking incidents has only marginally risen by 2.76% YoY, the increased value stolen is primarily attributed to rising asset prices, particularly Bitcoin.
Bitcoin now accounts for 40% of the transaction volume associated with the post-hack movement of stolen funds.
Shift in strategy
Hackers, including those linked to North Korea, are increasingly targeting centralised exchanges rather than decentralised finance (DeFi) protocols, reflecting a shift in strategy.
These attackers employ sophisticated social engineering tactics, including applying for IT jobs, to access centralised exchanges and execute their heists.
Eric Jardine, Cybercrime Research Lead at Chainalysis, said: “It is highly encouraging to see that criminal activity continues to become an ever-shrinking share of the crypto ecosystem,” said
“The growth of legitimate activity outpacing that of illicit activity on-chain demonstrates the continued transition of cryptocurrencies to the mainstream. As with traditional financial systems, illicit activity is unlikely to be eradicated.
“But advanced blockchain analysis tools, such as those provided by Chainalysis, empower law enforcement agencies and enterprises to counter the threat more effectively.”
Jardine added: “Ransomware and hacking are often carried out by organised groups using the advanced cyberinfrastructure. Disrupting cybercrime requires dismantling its entire supply chain, from attackers and affiliates to infrastructure service providers and money launderers. With the right tools, law enforcement can trace the flow of illicit funds on the blockchain and disrupt these criminal networks.”
As the cryptocurrency ecosystem continues to evolve, the decline in overall illicit activity alongside the rise in ransomware and theft underscores the dual nature of the sector’s maturation. While legitimate use of digital assets flourishes, challenges remain in combating sophisticated cybercrime tactics.
Featured image: Hackers are employing sophisticated social engineering tactics. Credit: Anete Lusina
