The cryptocurrency market has seen a strong increase in 2021. Along with its legal uses, it is also used for many illegal purposes. But now, according to a recent report by data analytics firm Chainalysis, criminal crypto use could decline worldwide by 2022. Legitimate crypto use will grow faster illegal levels as more countries are learning to take advantage of the uncensored transparency that blockchain provides.
Blockchain is a technology that enables the existence of Cryptocurrencies. It has an open ledger containing all the transactions ever made in cryptocurrency in an encrypted and anonymous form. In 2021, the trading volume in Cryptocurrencies has grown to $15.8 trillion, almost a 567% increase from 2020.
The criminal use of #cryptocurrencies will decrease worldwide, according to a new report by data analytics firm Chainalysis. https://t.co/YPokHTyPuK
– Express Technology (@ExpressTechie) January 15, 2022
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The report states that illegal transactions with illegitimate addresses are only 0.15% of crypto trading volume in 2021. This shows that legitimate transactions have outnumbered transactions. illegal and will continue into 2022.
Increase in scams
But the report also says that by 2021, scammers have stolen more than $14 billion in crypto from victims. This data is up 79 percent from $7.8 billion in 2020. The rise of decentralized finance (DeFi) last year is also one of the key factors driving the rise of scams. this.
In another report published in December 2021, Chainalysis revealed that Rug Pull also resulted in a $2.8 billion loss for crypto investors in 2021. It was called a ‘carpet’ pull’ when developers abandon a project and run away with investors’ money.
Authorities take actions during the year
The IRS Criminal Investigation Department has seized more than $3.5 billion in Cryptocurrencies from non-tax investigations, the department announced in November 2021. The Federal Bureau of Investigation (FBI) has also issued a warning. alert against cybercriminals using QR codes and Bitcoin ATMs to defraud individuals.