Cryptocurrency-linked criminal activity was significantly down through the first half of 2023 as Bitcoin recovered from a brutal bear market last year, a Chainalysis study has shown.
Cryptocurrency inflows to known illicit entities are down 65 per cent, or more than $5.2 billion, compared with where they were at the same time in 2022, the New York-based blockchain company said in its semi-annual report on Wednesday.
Cases of fraud took the biggest hit, with the amount swindled by perpetrators of these crimes $3.3 billion lower in the six months to the end of June, a decline of more than three quarters, the report said.
That is about three times larger than the next category, hacks, in which inflows fell by about $1.1 billion.
However, ransomware remains a problem. Inflows increased by about $176 million, making it the only segment to post a gain in the first six months of 2023, Chainalysis said.
That puts ransomware on pace for its second-biggest year on record, with at least $449.1 million extorted during the period, the report said.
If this pace continues, ransomware attackers will potentially be able to extort about $900 million from victims in 2023, within range of the $940 million stolen in 2021, it said.
Still, the findings of the study show that 2023 is “off to a good start”, with Chainalysis saying regulatory partnerships were behind the success registered in the fight against criminal activity in the cryptocurrency sector.
“This decrease in inflows to illicit addresses shows that the efforts of both the private and public sectors are paying off. Law enforcement pressure appears to be dampening criminal activity while crypto businesses are doing their part in protecting users,” it said.
Chainalysis said the efforts were preventing the types of hacks that have been prevalent in previous years.
“However, the persistent scourge of ransomware demonstrates the need to remain vigilant,” it said.
Illicit activity within the cryptocurrency sector remains rampant as it is a lucrative target for cyber criminals, who take advantage of unsuspecting users.
In turn, this has compounded the woes the sector has experienced, especially over the past year.
The cryptocurrency industry has struggled with continued price declines since last year.
Its market capitalisation peaked at more than $3 trillion in November 2021 but has since dropped. As of Wednesday, it stood at about $1.19 trillion, a plunge of more than 60 per cent, according to data from CoinMarketCap.
Bitcoin, the first and biggest cryptocurrency, fell below $16,000 in November – a year after it hit a peak of almost $68,000 – after a series of events rattled the industry.
These include the collapse of a number of digital asset companies, most notably the bankruptcy of the once-dominant FTX, and a series of investigations by authorities.
The cryptocurrency has since recovered and was priced at about $30,696 at 2pm UAE time on Wednesday.
It is up more than 93 per cent from the November low point and about 86 per cent higher so far this year, CoinMarketCap data showed.
The data from Chainalysis serves as an important reminder that businesses “should continue to shore up their cyber security and data backup procedures for added protection”, it said.
During the first half, impersonation fraud, in which criminals pretend to be law enforcement officers or other authority figures to extort money, registered a 23 per cent decline in inflows, compared with 77 per cent for fraud as a whole, the Chainalysis report said.
More alarmingly, the number of individual transfers to impersonators has risen by about half on an annual basis, suggesting that more people have fallen victim to impersonation fraud in 2023, even if the total amount lost is lower, it said.
The latest report from Chainalysis suggests cryptocurrency crime will remain elevated and of concern.
The value of illicit cryptocurrency transactions hit a record $20 billion in 2022 amid arguably the most troublesome year for the highly volatile industry, Chainalysis said in its annual report earlier this year.
Also, the value of cryptocurrency stolen touched a high of $3.8 billion in 2022 as hacking activity remained rampant, Chainalysis said in February.
That is up more than 15 per cent, compared with the $3.3 billion recorded in 2021, and an almost eightfold increase from 2020's $500 million.
The latest data shows “that even with total scam revenue down, law enforcement and crypto compliance teams can’t rest on their laurels”, Chainalysis said.
Gothia Cup 2025
4,872 matches
1,942 teams
116 pitches
76 nations
26 UAE teams
15 Lebanese teams
2 Kuwaiti teams
Lampedusa: Gateway to Europe
Pietro Bartolo and Lidia Tilotta
Quercus
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Company%20profile
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UAE currency: the story behind the money in your pockets
How to increase your savings
- Have a plan for your savings.
- Decide on your emergency fund target and once that's achieved, assign your savings to another financial goal such as saving for a house or investing for retirement.
- Decide on a financial goal that is important to you and put your savings to work for you.
- It's important to have a purpose for your savings as it helps to keep you motivated to continue while also reducing the temptation to spend your savings.
- Carol Glynn, founder of Conscious Finance Coaching
Safety 'top priority' for rival hyperloop company
The chief operating officer of Hyperloop Transportation Technologies, Andres de Leon, said his company's hyperloop technology is “ready” and safe.
He said the company prioritised safety throughout its development and, last year, Munich Re, one of the world's largest reinsurance companies, announced it was ready to insure their technology.
“Our levitation, propulsion, and vacuum technology have all been developed [...] over several decades and have been deployed and tested at full scale,” he said in a statement to The National.
“Only once the system has been certified and approved will it move people,” he said.
HyperloopTT has begun designing and engineering processes for its Abu Dhabi projects and hopes to break ground soon.
With no delivery date yet announced, Mr de Leon said timelines had to be considered carefully, as government approval, permits, and regulations could create necessary delays.
Secret Pigeon Service: Operation Colomba, Resistance and the Struggle to Liberate Europe
Gordon Corera, Harper Collins
THE DETAILS
Director: Milan Jhaveri
Producer: Emmay Entertainment and T-Series
Cast: John Abraham, Manoj Bajpayee
Rating: 2/5
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
UAE currency: the story behind the money in your pockets
The 15 players selected
Muzzamil Afridi, Rahman Gul, Rizwan Haider (Dezo Devils); Shahbaz Ahmed, Suneth Sampath (Glory Gladiators); Waqas Gohar, Jamshaid Butt, Shadab Ahamed (Ganga Fighters); Ali Abid, Ayaz Butt, Ghulam Farid, JD Mahesh Kumara (Hiranni Heros); Inam Faried, Mausif Khan, Ashok Kumar (Texas Titans
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
Killing of Qassem Suleimani
Killing of Qassem Suleimani
How to register as a donor
1) Organ donors can register on the Hayat app, run by the Ministry of Health and Prevention
2) There are about 11,000 patients in the country in need of organ transplants
3) People must be over 21. Emiratis and residents can register.
4) The campaign uses the hashtag #donate_hope
Results
1. Lewis Hamilton (Mercedes) 1hr 32mins 03.897sec
2. Max Verstappen (Red Bull-Honda) at 0.745s
3. Valtteri Bottas (Mercedes) 37.383s
4. Lando Norris (McLaren) 46.466s
5.Sergio Perez (Red Bull-Honda) 52.047s
6. Charles Leclerc (Ferrari) 59.090s
7. Daniel Ricciardo (McLaren) 1:06.004
8. Carlos Sainz Jr (Ferrari) 1:07.100
9. Yuki Tsunoda (AlphaTauri-Honda) 1:25.692
10. Lance Stroll (Aston Martin-Mercedes) 1:26.713,
COMPANY%20PROFILE
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Specs
Price, base: Dhs850,000
Engine: 3.9-litre twin-turbo V8
Transmission: Seven-speed automatic
Power: 591bhp @ 7,500rpm
Torque: 760Nm @ 3,000rpm
Fuel economy, combined: 11.3L / 100km
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
