Chainalysis Reports Decline in Illicit Crypto Revenues for 2023

In 2023, the volume of illegal revenues from crypto scams and hacks decreased by 29.2% and 54.3%, respectively, according to a report by Chainalysis.

For the first year since 2020, illicit transaction volume fell, from $39.6B in 2022 to $24.2B. As always, these figures are estimates based on illicit addresses we’ve identified as of now. Read the blog for a breakdown of what we do and don’t count as illicit activity. pic.twitter.com/4Y6OAyL6Pt

— Chainalysis (@chainalysis) January 18, 2024

Analysts calculated that stolen cryptocurrency accounted for 0.34% of the total volume of on-chain transactions in 2023, amounting to $24.2 billion compared to $39.6 billion in 2022. 

Of the total volume of illegal transactions, 61.5% — $14.9 billion — was attributed to entities and jurisdictions under sanctions. 

Contrary to overall trends, experts noted an increase in revenues from ransomware and darknet marketplaces. 

Cybercriminals in these areas continue to primarily use Bitcoin due to its high liquidity. However, the majority of illegal transactions in 2023 involved stablecoins, particularly in cases of fraud and sanctioned transactions.

Chainalysis attributed this to the difficulty these actors face in accessing US dollars through traditional means.

According to calculations by Immunefi, the cryptocurrency industry lost $1.8 billion in 2023 due to hacks and fraud. The North Korean Lazarus Group was responsible for stealing at least $308.6 million. 

Earlier, analysts at TRM Labs listed factors that might have contributed to the reduction in crypto industry losses from hacks in 2023.