Bitcoin accounted for 19% of illicit crypto volume in 2022, down from 97%
Bitcoin’s Share of Criminal Crypto Trading Has Dropped Significantly Over the Past Six Years, According to TRM Labs Illegal Crypto Ecosystem report.
In 2016, Bitcoin accounted for 97% of illicit cryptocurrency trading volume. By 2022, that proportion will drop to less than one-fifth of the illegal cryptocurrency trading volume, or less than 19%, the report notes.
Furthermore, while Bitcoin accounted for two-thirds of cryptocurrencies stolen in hacks in 2016, that share has fallen to 3% by 2022. Instead of Bitcoin, Ethereum and Binance Smart Chain have emerged among hackers. Ethereum accounted for 68% of cryptocurrency hacking volume, while Binance Smartchain accounted for 19%.
Furthermore, in 2016, Bitcoin was the only cryptocurrency used to finance terrorism. However, in 2022, assets on the TRON blockchain became a popular tool, accounting for 92% of cryptocurrencies used for terrorist financing.
The data suggests that cybercriminals have made a “qualitative leap” from Bitcoin and are now exploring other blockchains and assets, the report notes. Crypto compliance and risk management firm TRM Labs says that the act of chain-hopping or transferring assets from one blockchain to another is an attempt to obfuscate the origin and destination of illicitly obtained funds by criminals. said to be increasing.
Cryptocurrency prices fell in 2022, but crime did not.
Last year, cryptocurrency prices dropped significantly in the wake of high-profile bankruptcies such as FTX. However, the price drop “had no material impact on the dollar value of crypto-related crime,” the report notes.
TRM Labs identified and analyzed 40 types of cryptocurrency crime in its report. The group estimates that victims lost about $7.8 billion to Ponzi and Ponzi schemes last year. Another $2 billion worth of cryptocurrency was stolen in a cross-chain attack.
The report also showed that about $1.49 billion will be poured into darknet markets in 2022, with over 80% of these funds going to Russian-language darknet markets.
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