Since Q 1 of 2022, the market downturn in criptocurrency has taken centre stage attention. It is not the only area of concern.
CipherTrace recently reported that the spontaneous growth in the legitimate use of cryptocurrencies dwarfed its use for illegal activities. In 2021, it was stated that illicit use was just 0.15% of the transaction volume of cryptocurrencies.
Despite this reduction in transaction volume, Chainalysis revealed that some illicit activities have been on the rise. It has a 24 7 hotline for cyber attacks victims, and it has announced that it has a 24 7 hotline.
In a post on its website on June 22, Chainalysis stated that illegal activities such as theft of funds through hacks and ransomware are on the rise. It noted that it was a security risk that could expose users to scams and lead to a lack of trust in the ecosystem.
As detailed in the post:
The response service will function through a 24-7 hotline where victims of cyber attacks can get immediate support.
The victims will be sent to a team of investigative experts to help trace the stolen funds. The team will liaise with law enforcement and asset recovery counsel if the funds have been transferred.
In the website post, an analysis showed that in 2021 ransomware attackers netted $731 million. Kim Grauer, Chainalysis head of research, said that the average ransomware payment went up 34% in 2021, as criminals went after bigger targets.
There have been several hacks and exploitation of funds in the year 2022, which resulted in loss of funds. In Q 1 of 2022, hackers have netted over $1.2 billion, compared to $154 million lost in Q 1 of 2021, according to Immunefi.
Most of the hacks have been recorded on cross-bridge platforms. Wormhole and Ronin alone make up for the lion's share of criptocurrency losses occurring in Q 1 of 2022.