2021 and 2022 were record-setting years for crypto-related crime

In January 2022, we heard that 2021 had a record-setting amount of crypto-related crime with an estimated 14 billion dollars. This number was later revised to 18 billion dollars.

The report for 2022 came in January 2023. The reported number was again record-setting: 20.1 billion dollars. This number has since been revised to 23.8 billion dollars.

The news about 2022 setting this record was contra what could have been expected (bear markets traditionally see a decrease in crypto-related crime).

Source: Crypto Crime Report 2023 by Chainalysis, page 5

Two interesting trends appeared in 2022 compared to 2021:

1. Crypto scams revenue went down almost 50%
2. Crypto-related crime related to sanctions were included in the report

It is notable that political sanctions have become a big topic in the world these past two years. This will of course be seen positively by some and negatively by others. Does crypto have borders?

The sources for these data are the annual reports by Chainalysis and the Internet Crime Report by FBI.

2023 is not breaking crime-related records - so far

2023 has seen three positive trends:

1. An increase in the number of self-custody wallets (which has resulted in a net outflow of crypto from centralized exchanges)
2. An increase in the number of long-term holders of BTC in spite of whales taking profits
3. An increased focus on how to stay safe from phishing attacks

As we all know, crypto is volatile and unpredictable.

However, 2023 has so far shown out to be a decent year for crypto. Hopefully it will stay that way.