- Crypto addresses associated with illicit entities and activities received over $24 billion in 2023
- Funds sent to these addresses accounted for less than 0.4% of all blockchain transactions
- The amount is roughly $15 billion less than what such addresses received in 2022
Blockchain intelligence firm Chainalysis has reported that crypto addresses associated with illicit activities or entities received slightly above $24 billion in 2023, $15 billion less than what they pocketed in 2022. According to the firm, the 2023 figure represents less than 0.4% of all on-chain transactions. The Chainalysis report revealed that scams and hacks dropped by 29.2% and 54.3%, respectively compared to the previous year, an analysis that agrees with a recent Immunefi report that disclosed that crypto scammers and hackers stole $2 billion less in 2023 compared to 2022.
Ditching BTC for Stablecoins
The report, which is only an excerpt of the full research scheduled to be published next month, also disclosed that malicious entities are ditching Bitcoin (BTC) for stablecoins. According to Chainalysis, the shift was evident “over the last two years,” adding that the change coincides with an increase in the growth of stablecoins’ market share across the crypto space.
Chainalysis also discovered that scammers are preferring “romance scam tactics” instead of “advertising them far and wide.” The on-chain analytics firm noted that while some sources like the FBI report a rise in the number of crypto scams in the U.S., revenues from such undertakings continue to decrease.
The report observed that revenues from most types of crimes involving crypto were declining except those associated with ransomware and darknet markets, which recorded an increase in 2023.
Sanctioned Entities Most Notorious
Chainalysis disclosed that transactions associated with sanctioned entities accounted for the highest amount of funds sent to illicit addresses at $14.9 billion.
Although the amount sent to illicit addresses in 2023 is lower than in 2022, it shows that malicious actors are adapting to advancements in the web3 world.
