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Crime and Investigations

Cryptocurrency Scam Revenue Declined by 46% in 2022

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.

The report analyzed five categories of scams, including investment, romance, NFT, giveaway, and impersonation scams, and found that investment scams accounted for more than half of the revenue.

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.

READ MORE: You Won’t Believe What NFT This User Sold for $280,000

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.

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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