In 2023, the world saw a decrease in illegal cryptographic activities, totaling $24.2 billion.
Chainalysis’s 2024 report points out a notable shift: criminals are moving away from Bitcoin.
This year, illegal crypto transactions have fallen from 2022’s high of $39.6 billion. Eric Jardine of Chainalysis sees this as the crypto sector growing up.
Jardine believes the SEC‘s nod to Bitcoin ETFs will make 2024’s market infrastructure stronger. This should make crypto trading safer and more competitive.
Illicit gains from crypto scams went down by 29.2% last year. Stolen crypto funds saw an even larger fall of 54.3%. A big reason is the drop in DeFi hacking.
Yet, 2023 saw more money made from ransomware and dark web sales. Jardine finds the rise in ransomware earnings troubling, especially after efforts to fight such attacks improved.
The shutdown of the Hydra market did little to stop dark web dealings. Illegal activities and profits in these areas hit a high in 2021.
Last year, sanctioned groups were behind 61.5% of all dodgy crypto transactions, making up $14.9 billion.
This includes crypto services hit by US sanctions and those operating freely outside these jurisdictions.
Garantex, a Russia-based exchange sanctioned in the UK and by OFAC, was key in these transactions in 2023.
Illicit dealings only formed 0.34% of all crypto transactions last year, a drop from 0.42%. Bitcoin is no longer the go-to for cybercriminals, making up just 25% of scams.
Stablecoins have become the new favorite for illegal crypto transactions worldwide. This mirrors the overall rise in stablecoin use, including for legal purposes.
After the SEC’s Bitcoin ETF Approval
The SEC’s green light for Bitcoin ETFs was a big deal for digital assets. Though it boosted investor excitement, Bitcoin’s price later moderated.
Bitcoin’s price dipped below $40,000 by late Tuesday in New York, continuing its drop over seven days.
On the day ETFs launched, Bitcoin’s price jumped to $49,021, as reported by Bloomberg News.
A Deutsche Bank study found over one-third of people think Bitcoin will fall below $20,000 by next January.
About 15% see its price hitting between $40,000 and $75,000 by the end of the year.