{"id":17898,"date":"2023-02-21T05:19:07","date_gmt":"2023-02-21T05:19:07","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/crypto-scam-revenue-dropped-46-in-2022-featured-bitcoin-news\/"},"modified":"2023-02-21T05:19:07","modified_gmt":"2023-02-21T05:19:07","slug":"crypto-scam-revenue-dropped-46-in-2022-featured-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/crypto-scam-revenue-dropped-46-in-2022-featured-bitcoin-news\/","title":{"rendered":"Crypto Scam Revenue Dropped 46% in 2022 \u2013 Featured Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Revenue from cryptocurrency scams dropped 46% in 2022, according to blockchain data analytics firm Chainalysis. \u201cWe attribute most of this decline to market conditions, as scam performance tends to worsen when cryptocurrency prices are in decline,\u201d the firm explained.<\/strong><\/p>\n

\u2018Crypto Scam Revenue Fell Significantly in 2022\u2019<\/h2>\n

Blockchain data analytics firm Chainalysis published its 2023 Crypto Crime Report last week with a section on crypto scams. \u201cCrypto scam revenue dropped 46% in 2022,\u201d the 109-page report reads, elaborating:<\/p>\n

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Crypto scam revenue fell significantly in 2022, from $10.9 billion the year prior to just $5.9 billion.<\/p>\n<\/blockquote>\n

Chainalysis tracks several types of crypto scams, including giveaway scams, impersonation scams, investment scams, non-fungible token (NFT) scams, and romance scams.<\/p>\n

Noting its numbers are \u201ca lower-bound estimate,\u201d the blockchain analytics firm explained that \u201cestimates of the true amount lost to fraudsters will grow as we identify more addresses associated with scams.\u201d The firm specifically mentioned \u201cpig butchering<\/a>\u201d scams which have become alarmingly popular<\/a>. The Federal Bureau of Investigation (FBI) has warned<\/a> about this type of crypto scam many times. Last November, U.S. authorities seized<\/a> seven domains used by pig butchering scammers.<\/p>\n

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Yearly crypto scam revenue from 2017 to 2022. Source: Chainalysis.<\/figcaption><\/figure>\n

Regarding the decline in crypto scam revenue, Chainalysis detailed:<\/p>\n

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We attribute most of this decline to market conditions, as scam performance tends to worsen when cryptocurrency prices are in decline.<\/p>\n<\/blockquote>\n

\u201cCryptocurrency scam revenue began the year trending upwards, but plummeted in early May \u2014 the same time the bear market set in following the collapse of Terra Luna \u2014 and then declined steadily throughout the rest of the year,\u201d Chainalysis described.<\/p>\n

While noting that \u201csome types of scams see revenue changes increase as crypto asset prices decrease,\u201d the blockchain analytics firm pointed out: \u201cScam revenue throughout the year tracks almost perfectly with bitcoin\u2019s price, consistently maintaining a three-week lag between price moves and changes in revenue.\u201d<\/p>\n

What do you think about cryptocurrency scam revenue dropping 46% last year? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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