Cryptocurrency Scam Revenue Declined by 46% in 2022
According to a recent report by Chainalysis, revenue generated from cryptocurrency scams dropped by 46% in 2022 compared to the previous year.
Despite generating lower overall revenue, romance scams had a significant impact on a revenue-per-victim basis, with an average victim deposit of almost $16,000.
The report also revealed that scam revenue closely follows the price of Bitcoin, with investment scams being the most correlated with Bitcoin’s price.
In response to changing market conditions, scammers have turned to stablecoins for their scams, likely as a hedge against a market crash and a preference by potential victims to hold onto their Bitcoin in anticipation of a price increase.
Most scam revenue disproportionately comes from the U.S., particularly NFT-related scams, and centralized crypto exchanges and DeFi protocols have also sent a significant amount to scams.
Interestingly, only 1% of victim payments to scams come from crypto ATMs, suggesting that this payment method is not commonly used for illicit activities.