Crypto Crime Drops 20% in 2024, But Stolen Funds and Ransomware Surge: Chainalysis Report

The Block just announced an exciting event called Emergence, happening in Prague on December 5-6, 2024.

According to a new report from Chainalysis, illicit activity in cryptocurrency on the blockchain has dropped by nearly 20% this year. This is good news, but there’s a twist: two types of illegal activities—stolen funds and ransomware—are actually on the rise.

The report shows that while overall crypto crime is down, the money flowing into legitimate services is at its highest since the last big market surge in 2021. Illicit activity has fallen by 19.6%, going from $20.9 billion to $16.7 billion. That’s a significant drop. And remember 2021? That was when Bitcoin reached its peak of over $68,000. This uptick in legitimate use suggests people are increasingly adopting cryptocurrency around the globe.

However, not everything is looking up. Stolen funds have seen a nearly 100% increase, jumping from $857 million to $1.58 billion. Ransomware payments have also risen by about 2%, from $449.1 million to $459.8 million since January. What’s more, the average amount stolen in each incident has gone up by almost 80%. This spike is partly due to Bitcoin’s rising price, which now makes up 40% of the total transaction volume linked to these crimes.

Even with the overall decline in illegal activity, experts predict that 2024 could be the biggest year yet for ransomware payments. Why? Cybercriminals are shifting tactics. They’re carrying out fewer high-profile attacks but are focusing on larger payouts in a strategy called "big game hunting." The report suggests we might see another record year for ransomware.

Chainalysis also points out that some cybercriminals, including those connected to North Korea, are increasingly using off-chain methods to steal funds. These hackers are known for executing some of the largest heists by infiltrating crypto businesses. They often use clever social engineering tactics to break in, steal assets, and then employ sophisticated money laundering techniques to cash out before the authorities can intervene.

In a recent UN report, it was highlighted that many North Koreans involved in cybercrime are trying to get jobs with Western tech companies. They’re using advanced tricks to get hired, which raises serious concerns.