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Crypto losses increased by about 60% in the first seven months of the year: Chainalysis

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Crypto losses increased by about 60% in the first seven months of the year: Chainalysis According to a blog post published on Tuesday by blockchain analysis firm Chainalysis, cryptocurrency hack-related losses increased by nearly 60 percent in the first seven months of 2018 to $1.9 billion (approximately Rs. 15,070 crore). This increase was driven by a surge in funds stolen from decentralised finance (DeFi) protocols. In the same period previous year, hacking-related thefts totaled $1.2 billion (roughly Rs. 9,500 crore). Follow For More Updates at Crypto losses by Worldrapiddnews.com

Crypto losses increased by about 60% in the first seven months of the year: Chainalysis
Crypto losses increased by about 60% in the first seven months of the year: Chainalysis

DeFi applications, many of which operate on the Ethereum blockchain, are financial platforms that enable lending in cryptocurrency outside of traditional banks. Given the $190 million (approximately Rs. 1,500 crore) breach of cross-chain bridge Nomad and the $5 million (approximately Rs. 40 crore) hacking of multiple Solana wallets in the first week of August, Chainalysis observed that the trend is not likely to reverse in the near future.

“DeFi protocols are uniquely susceptible to hacking, as their open source code can be studied ad infinitum by cybercriminals looking for exploits, and it’s possible that protocols’ incentives to reach the market and grow quickly lead to lapses in security best practises,” Chainalysis wrote in a blog post. Crypto losses

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The majority of cash stolen using DeFi protocols can be ascribed to “bad actors” affiliated with North Korea, particularly elite hacking teams such as Lazarus Group, according to a report by an American corporation. Chainalysis estimates that North Korea-affiliated entities have stolen approximately $1 billion (approximately Rs. 7,930 crore) in cryptocurrencies from DeFi protocols so far this year.

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In keeping with the decrease in digital asset prices, the blockchain intelligence business reported a steep 65 percent decline in crypto frauds through July. In the 12 months leading up to July, total revenue from fraud decreased by 65 percent to $1.6 billion (approximately Rs. 12,700 crore) from $4.46 billion (about Rs.

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Swindlers may pose as genuine businesses and sell counterfeit crypto currencies or tokens. Kim Grauer, the director of research at Chainalysis, said in an email to Reuters, “Scams are down mostly due to the crypto market decline, but also due to the many law enforcement victories against scammers and the product solutions exchanges may utilise to combat scamming.”

According to CoinGecko, the market capitalisation of cryptocurrencies as of late Thursday was $1.1 trillion (approximately Rs. 87,26,400 crore), down more than 50 percent from around $2.35 trillion (approximately Rs. 1,86,41,600 crore) at the beginning of the year. In the last several months, the price of Bitcoin has fluctuated between $20,000 (about Rs. 15.8 lakh) and $24,000 (approximately Rs. 19 lakh), a decrease of almost 48 percent.

Crypto losses increased by about 60% in the first seven months of the year: Chainalysis
Crypto losses increased by about 60% in the first seven months of the year: Chainalysis

According to Chainalysis, scam-related revenues have decreased in tandem with the price of Bitcoin since January 2022. In addition to a decline in scam proceeds, the total number of individual transfers to schemes in 2022 was the lowest in the previous four years.

According to Chainalysis’s analysis, “these data indicate that fewer people than ever are falling for bitcoin frauds.” “One possible explanation for this is that as asset prices decline, cryptocurrency scams — which often offer themselves as passive crypto investment opportunities with massive promised returns — are less appealing to potential victims.”

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