Crypto scams fall 65% after gullible noobs exit the market: Chainalysis

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Exited the crypto market recently? You may have been a gullible noob. Scams have seen a 65% decline since last year, linked to declining prices.

Fewer people have fallen victim to cryptocurrency scams in 2022 so far due to falling asset prices and the exit of inexperienced crypto users from the market, a new crypto crime report reveals.sitting

at $1.6 billion, equating to a 65% decline from the prior year period, which appears linked to the declining prices of cryptocurrencies: “Since January 2022, scam revenue has fallen more or less in line with Bitcoin pricing. [...] it’s not just scam revenue falling — the cumulative number of individual transfers to scams so far in 2022 is the lowest it’s been in the past four years.”

Chainalysis’ cybercrimes research lead Eric Jardine, the author of the report, explains that crypto investors are more likely to fall for scams during bull markets when the investment opportunities and outsized returns are most enticing to victims.Jardine also hypothesized that bull markets also typically see a higher prevalence of new, inexperienced crypto users, who are more likely to fall victim to scams.and Finiko scams in 2021, which netted $3.5 billion in total scam revenue.

Conversely, Jardine notes the largest scam of 2022 so far has only netted $273 million and is related to cannabis investing platform JuicyFields.io, which has reportedly locked investors out of their accounts on their cannabis-focused “e-growing” service.While scam revenue has fallen in the year, Jardine notes that crypto-based hacking has bucked the trend, increasing 58.3% through July 2022 to $1.

 

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