Dubai: Efforts by governments and more alert self policing by crypto platforms have sharply brought down illegal activity in this space. That’s the reading from a new research brought out by Chainalysis, the blockchain data company.
The numbers suggest that the flow of crypto funds into ‘legitimate services’ has reached the highest levels since 2021. At the same time, ‘aggregate illicit activity fell by an impressive 19.6 per cent, dropping from $20.9 billion to $16.7 billion’, the report finds.
“The growth of legitimate activity outpacing that of illicit activity on-chain demonstrates the continued transition of cryptocurrencies to the mainstream,” said Eric Jardine, Cybercrime Research Lead at Chainalysis.
“Just as with traditional financial systems, it is unlikely that illicit activity will be entirely eradicated. But advanced blockchain analysis tools, are empowering law enforcement agencies and enterprises to counter the threat ever more effectively.
“This places crypto and blockchain on track to revolutionise the exchange of value, much like the internet did for the exchange of information.”
Ransomware’s rise
Ransomware attacks, however, continues its uptick. At this point last year, Chainalysis reported cumulative ransomware payments of around $449.1 million through the end of June 2023. This year through the same period, the researchers recorded $459.8 million in ransoms paid, setting 2024 firmly on track to be the worst year on record.
“Another concerning finding is the ballooning of the maximum ransom payment observed in a given year,” the company says. “Thus far, 2024 saw the largest single payment ever recorded at approximately $75 million to a ransomware group known as Dark Angels. This increase in the maximum payment size signifies a 96 per cent yoy growth from 2023 and a 335 per cent rise compared to the maximum payment in 2022.”
