Mid-year Crypto Crime Update: Illicit Activity Falls With Rest of Market, With Some Notable Exceptions
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2022 has been a tumultuous year for cryptocurrency markets, with significant price declines across all currencies in May and June. While there’s no telling if we’ve reached the bottom, as of now in early August, prices have been relatively stable for the last month, with Bitcoin holding between $20,000 and $24,000. But what effects has the market downturn had on illicit cryptocurrency activity?
Cryptocurrency transaction volumes this year for both illicit and legitimate entities are tracking behind 2021 through July. Overall, criminal activity appears to be more resilient in the face of price declines: Illicit volumes are down just 15% year over year, compared to 36% for legitimate volumes. However, the aggregate data doesn’t tell the whole story. If we dig into specific forms of cryptocurrency-based crime, we find that some have actually increased in 2022, while others have declined more than the market overall. Below, we’ll look at examples of …
Cryptocurrency transaction volumes this year for both illicit and legitimate entities are tracking behind 2021 through July. Overall, criminal activity appears to be more resilient in the face of price declines: Illicit volumes are down just 15% year over year, compared to 36% for legitimate volumes. However, the aggregate data doesn’t tell the whole story. If we dig into specific forms of cryptocurrency-based crime, we find that some have actually increased in 2022, while others have declined more than the market overall. Below, we’ll look at examples of …