A report from the blockchain analytics company Channel analysis say it the total value of cryptocurrency received by illicit addresses has reached $ 14 billion in 2021, up 79% from $ 7.8 billion the year before.
Transactions involving illicit addresses accounted for 0.15% of all crypto transaction volumes in 2021 compared to 0.62% in 2020, according to a blog post published on Thursday.
Scammers stole $ 7.8 billion worth of cryptocurrency from victims in 2021, an 82% increase from the previous year. Of the total value, more than $ 2.8 billion came from carpet draws, a type of decentralized finance scam where developers of a cryptocurrency project reduce the value of a token to zero by taking user funds from the liquidity pool and dropping the token.
Cryptocurrency theft increased 516% to around $ 3.2 billion in crypto in 2021, with around $ 2.2 billion of the total value stolen from DeFi protocols.
The use of DeFi protocols in money laundering activities increased by 1,964% in 2021, according to a snapshot of Chainalysis’s 2022 Crypto Crime Report.
Chainalysis will sponsor the Potomac Officers Club’s Digital Currency and National Security Forum January 27. The virtual event will feature National Cyber Security Director Chris Inglis as the keynote speaker and include a fireside chat session with Juan Zarate, Global Co-Manager and Chief Strategy Officer at K2 Integrity, and the MicroStrategy CEO Michael Saylor.
Join the forum to hear from these distinguished government and industry leaders as they explore the future of virtual currencies. Register now via the Potomac Officers Club Events page.