Cryptocurrency Crime Trends in 2024

Illicit cryptocurrency activity has decreased since the beginning of the year, while inflows into legitimate services are at their highest level since the previous bull run of 2021, according to a new report from leading blockchain analytics firm Chainalysis.

Decline in Illicit Activity

“Aggregate illicit activity has fallen year-to-date by 19.6%, dropping from $20.9 billion to $16.7 billion,” the company’s 2024 Crypto Crime mid-year report stated.

The report noted that inflows to legitimate services are the highest since the peak of the last cryptocurrency bull market in 2021 — when Bitcoin reached its previous all-time high of over $68,000.

This encouraging sign indicates continued global adoption of crypto.

Rise in Stolen Funds and Ransomware

While overall cryptocurrency crime has declined, two areas are rising: stolen funds and ransomware. The report indicated that stolen funds inflows nearly doubled from $857 million to $1.58 billion. Ransomware inflows increased by approximately 2%, from $449.1 million to $459.8 million since January.

The average value of cryptocurrency stolen per incident has also risen by almost 80%. “This increase is partially attributed to Bitcoin’s price rise, which accounted for 40% of the total transaction volume linked to these heists.”

Despite the overall decline in illicit activity, the report predicts 2024 could be the highest-grossing year for ransomware payments, largely due to cybercriminals targeting fewer high-profile attacks while seeking larger payments, referred to as ‘big game hunting’.

Off-Chain Methods for Illicit Activity

The study found that cybercriminals, including North Korean-linked IT workers, are increasingly utilizing off-chain methods to steal funds through infiltration of crypto-related services.

Chainalysis noted: “North Korean-linked hacking groups are behind some of the largest heists, employing calculated social engineering tactics to breach crypto businesses, steal assets, and utilize expert money laundering techniques before the funds are seized.”

A recent UN report stated that thousands of North Koreans involved in cybercrime are seeking employment with Western tech companies using sophisticated tactics to get hired.