Cryptocurrency-related crimes reduced in 2020, says report

A new report from Chainalysis has indicated that the share of crypto transactions linked to criminal activities fell in 2020. According to the report, the percentage reduced from 2.1 recorded in 2019 to only 0.34. However, ransomware attacks have tripled in volumes when compared to what was recorded in 2019.

A major drop in cryptocurrency criminal activities

So often, regulators and mainstream media point out that criminals use cryptocurrencies like Bitcoin. Although the argument has been proven false in recent years, it is still prevalent in the mainstream world.

Chainalysis, in its new report on crimes related to the cryptocurrency industry, further threw more light on this. According to the report, the share of criminal related crypto activities fell to 0.34% or $10 billion in value. A sharp drop, when considering that in 2019, the criminal activity represented 2.1% (21.4 billion) of the total volume.

Fiat currency still constitutes the highest form of transactions used by criminals. The crypto community has, over the years, sought to eliminate the use of crypto-assets to perpetrate criminal acts gradually. Crypto exchanges have incorporated several features such as KYC and AML practices, which have greatly reduced criminal funds’ inflow.

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A dramatic rise in ransomware

Although criminal activities decline from the general point of view, ransomware cases had grown significantly in 2020. According to the chanalysis report, the volume generated by ransomware is up 311% compared to 2019. In the past year, many ransomware has targeted entire municipalities, schools, hospitals, and public centers. A sad trend that is unlikely to stop in 2021.

Chainalysis attributes this sharp increase to the Covid-19 pandemic, with many workers having to work from home. This has enabled sensitive information to be at risk of leaking to cybercriminals due to negligible cybersecurity systems in many homes. ‘’Covid-19 pandemic has opened up new vulnerabilities for many organizations,”

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The figures obtained in 2020 are, however, subject to change. Chainalysis specifies that many elements have been identified that are linked to scams. Nevertheless, the initial report proves that fraudulent transactions occupy a smaller place in the crypto space than before.