Preventing the Misuse of Virtual Assets: An Anatomy of Crypto-Enabled Cyber Crime
At Least One Corner of the Cryptosphere is Booming
In 2021, crypto criminals directly stole a record US$32 billion (£24.8 billion) worth of cryptocurrency. In 2020, at least £350 million in crypto ransoms was paid out to hacker gangs such as DarkSide, the group responsible for the attack on the Colonial Pipeline.
Cryptocurrency Crime is Flourishing
Cryptocurrency crime is flourishing, according to multiple year-end reports. For example, Chainalysis, a blockchain analysis company, found that the total value of cryptocurrency stolen in 2021 was up 516% from the previous year. The report also found that the share of cryptocurrency stolen from decentralized finance (DeFi) protocols increased from 30% in 2020 to 72% in 2021.
This increase in cryptocurrency crime is likely due to several factors, including the increasing popularity of cryptocurrency, the anonymity of cryptocurrency transactions, and the lack of regulation in the cryptocurrency market.
Conclusion
Cryptocurrency crime is a serious and growing problem. Law enforcement agencies must take action to prevent hackers from stealing cryptocurrencies and prevent the abuse of this new technology that has the potential to revolutionize the financial world.
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