Following the SEC's green light for Spot Bitcoin ETFs in January and the recent announcement of stablecoin regulations by the Central Bank of the UAE, the cryptocurrency sector has received another major boost. According to new findings from Chainalysis, a blockchain data firm, the inflow of crypto assets into legitimate services has hit its peak since 2021, while the total amount of illegal activities within the same timeframe has decreased by a noteworthy 19.6%, from $20.9 billion to $16.7 billion.
Eric Jardine, the Cybercrime Research Lead at Chainalysis, expressed optimism about the shrinking role of criminal activities in the crypto space. He noted that the surge in legitimate transactions overshadowing illicit ones signifies a shift towards mainstream acceptance of cryptocurrencies. Jardine also highlighted the role of advanced blockchain analysis tools in aiding law enforcement and businesses to combat illegal activities more effectively, positioning crypto and blockchain to transform value exchange similarly to how the internet revolutionized information exchange.
Despite the overall decrease in illegal transactions, ransomware attacks have shown an alarming increase. Chainalysis data indicates that ransom payments have risen from $449.1 million by the end of June 2023 to $459.8 million by the same period in 2024, marking 2024 as potentially the worst year for ransomware on record. Additionally, the maximum ransom payment has skyrocketed to approximately $75 million, a 96% increase from 2023 and a 335% rise from 2022.
The year 2024 has also witnessed a revival in hacking activities, with the total value stolen reaching $1.58 billion, an 84.4% increase from the previous year. Notably, Bitcoin has regained its prominence among crypto criminals, accounting for 40% of the transaction volume related to stolen funds. This trend suggests a shift back to targeting centralized exchanges rather than DeFi protocols. Jardine emphasized the importance of disrupting the supply chains of cybercrime to combat these threats effectively.
