By Richard Hines
The overall supremacy of blockchain technology has been demonstrated with the number of crimes that were exposed in 2022.
Through this transparent decentralized system, most hack attacks and fraud schemes were detectable and traceable. Chainalysis details these events in recent blog post.
Highlight Of 2022 Cybercrimes
It is no news that 2022 was a very turbulent year for the crypto industry.
A major trend in the crypto space was hacking. In 2022, a number of high-profile crypto exchanges were hacked, resulting in the loss of millions of dollars worth of cryptocurrency.
One of the most notable hacks occurred in May 2022, when the Binance exchange was targeted by hackers who stole over $40 million worth of cryptocurrency.
Also, DeFi platforms fell victim to these hack attempts. Notable DeFi platforms like Wintermute, Mango Market recorded losses of over $400 million in the month of October.
The hacks in this month were so many that the month was tagged “Hacktober.”
Hackers drained over $800 million from DeFi platforms, however some hack cases were termed as white hat cases.
Fraudulent transactions in the crypto industry totalled over $20 billion in transaction volume last year.
With the total number of illicit transaction volume recorded in 2022 it is worth noting that over 40% accounted for activities linked with firms and industries under sanctions.
Even with the bear market there was still an increase in illicit transaction volumes. The transaction volume on sanctioned entities in 2022 surpassed that of 2021.
Bankruptcies and Crypto crashes were the most significant highlights of 2022, with firms like Terra, Celsius, Three Arrows Capital and FTX suffering liquidation and collae.
Regulatory Bodies Move To Better Regulate The Crypto Space in 2023
While the use of cryptocurrency can bring many benefits, such as increased financial inclusion and faster, cheaper transactions, it is clear that more needs to be done to prevent and combat crypto crimes in 2023.
To combat crypto crimes, governments and regulatory bodies have been cracking down on illegal activities in the crypto space.
The U.S. Securities and Exchange Commission (SEC) has been working to combat fraud and scams related to initial coin offerings (ICOs) and other crypto assets.
In addition to government efforts, the crypto industry itself is taking steps to combat crypto crimes. Many crypto exchanges have implemented know-your-customer (KYC) and anti-money laundering (AML) protocols to help prevent illegal activities.
The industry is also working to develop more robust security measures to protect against hacking and other cyber threats.