🥷 Crypto-based Crimes
Explaining the rise in crypto-based crimes and how law enforcement is trying to combat it
Today's Highlights
- The increase in cryptocurrency crimes
- Blockchain jobs - a listing of fresh jobs related to web3/blockchain/crypto.
- In Other News - a few interesting developments we're tracking.
The increase in cryptocurrency crimes
The beauty of blockchain/cryptocurrency, compared to traditional methods of payments, is that it is much more secure to use while being faster. Blockchain utilizes decentralization and cryptographic protection in order to protect user data while making sure the user has full control over their data.
But blockchain is not 100% foolproof. In fact, crypto-based crimes almost doubled compared to 2020 with approximately $14B being sent to illicit addresses. While this seems like an alarming jump, this increase in crypto crime is expected due to cryptocurrency usage increasing by more than 500% in 2021 compared to 2020. Illicit transaction volume only jumped 79%. The share of illicit transactions in total crypto transactions is actually at its lowest, but more work needs to be done.
What led to crypto-based crime rates increase? Most of the increase can be traced back to the rise of DeFi. The two biggest categories for that led to the rise in crimes are stolen funds and scams. Scamming revenue rose 82% to $7.8B stolen. Nearly half of the money stolen comes from rug pulls, which is a newer form of scamming where developers appear to build legitimate cryptocurrency projects, and they get investors to give money to support the project. Once they are satisfied with the money collected, they take the money and disappear.
While the increase in crypto crimes signal no reason to be worried, measures must still be put in place to combat them. Fortunately, law enforcement has been gaining more knowledge recently to help fight against these crimes. IRS criminal investigations have seized over $3.5B worth of cryptocurrency. Blockchain-based investigative services are also being developed to more efficiently find crypto scammers.
The future of crypto is bright, but it will fall into the same trap as traditional currency if the holes in its security aren’t filled up.
💡 Blockchain Jobs
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DEXTools
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MELD
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Ready Games Network
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Constellation Network
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In Other News
Shaurya Malwa
Jake Simmons