According to Kim Grauer, research director at Chainalysis, crypto-related crime rates are likely to decrease to a smaller and smaller share of the industry in the coming year as law enforcement makes greater use of the transparency provided by blockchain technology.
According to January 6 Report Data from Chainalysis shows that the growth in legal cryptocurrency use “much outpaces the growth in criminal use.” The share of cryptocurrency trading volume associated with illicit activity has never been lower, accounting for only 0.15% of volume in 2021.
She told Cointelegraph that barring any “unusual criminal incidents,” she expects the growth in legal cryptocurrency usage to outpace illicit usage to continue to accelerate through 2022.
Things in the space look promising, she said, as “the illicit share of transaction volume continues to decline” and “the narrative that cryptocurrencies are primarily a means of exchange for criminals is finally being put on hold.”
“Enforcement victories continue to demonstrate to bad actors that the inherent transparency of cryptocurrencies makes them an unpopular means of moving illicit funds. Cash is still king when it comes to illicit finance, and that’s unlikely to change.”
In 2021, rug pulling is the scam of choice for crypto criminals. scam Revenues rose 82% to $7.8 billion in 2021, with more than $2.8 billion coming from carpet pulls.
However, Grauer said that doesn’t necessarily indicate that carpet pulling will remain the most popular scam in 2022. Conversely, as the space moves towards the web3, criminals may “abuse new technologies such as DeFi, NFTs, and DAOs.”
“We saw this [in 2021] When it comes to DeFi in particular, criminals are not only targeting DeFi platforms, such as by hacking or pulling the rug, but are increasingly using DeFi platforms to launder money. “
Additionally, Grauer said that while she does not believe a potential crypto bear market will affect the incidence or type of crypto crime, a major financial recession or depression could occur.
“When you consider the overall economic market — not just cryptocurrencies — recessions and depressions drive increased criminal activity,” she said.
2021 will see many notable achievements by law enforcement agencies around the world. November 2021, IRS Criminal Investigation Announce It seized more than $3.5 billion worth of cryptocurrency from non-tax investigations in 2021.
While that percentage is low, cryptocurrency-based crime actually hit an all-time high in 2021, with illicit addresses receiving $14 billion in a year, up from $7.8 billion in 2020, according to Chainalysis.