Revenue from cryptocurrency scams fell 46% in 2022, according to blockchain data analytics firm Chainalysis. “We attribute most of this decline to market conditions, as scam performance tends to worsen when cryptocurrency prices are on the decline,” the firm explained.
‘Crypto Scam Revenue Dropped Significantly in 2022’
Data analytics firm Blockchain Chainalysis released its 2023 Crypto Crime Report last week with a section on crypto scams. “Cryptocurrency scam revenue fell 46% in 2022,” the 109-page report reads, explaining:
Revenue from crypto scams dropped significantly in 2022, from $10.9 billion the year before to just $5.9 billion.
Chainalysis tracks various types of crypto scams, including giveaway scams, phishing scams, investment scams, non-fungible token (NFT) scams, and romance scams.
Noting that its numbers are “a lower bound estimate,” the blockchain analytics firm explained that “estimates of the actual amount lost to scammers will grow as we identify more addresses associated with scams.” The firm specifically mentioned “pig slaughter” scams that have become alarmingly popular. The Federal Bureau of Investigation (FBI) has warned many times about this type of crypto scam. Last November, US authorities seized seven domains used by pig slaughter scammers.
Regarding the decline in revenue from crypto scams, Chainalysis detailed:
We attribute most of this decline to market conditions, as scam performance tends to worsen when cryptocurrency prices are on the decline.
“Crypto scam revenue started the year on an upward trend, but plunged in early May, around the same time the bear market set in following the Terra Luna collapse, and then declined steadily for the rest of the year.” , described Chainalysis.
While noting that “some types of scams see revenue swings that increase as crypto asset prices decline,” the blockchain analytics firm noted: “Scam revenue throughout the year almost perfectly follows the price of bitcoin, constantly maintaining a three-week lag between price movements and changes in revenue.”
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