The Big Picture: Decline in Crypto Crime Earnings

In a plot twist that seems to belong to a financial thriller, revenue from crypto-related crime took a nosedive in 2020, dropping by over 50%. Cybercriminals managed to pocket around $5 billion less than the previous year, falling from a staggering $10 billion-plus to a more modest $5 billion. That’s a 53% decrease that could make any criminal rethink their career choice.

Illicit Transactions on the Decline

Scrambling for their slice of the digital dough seems to be less appealing nowadays. The percentage of illicit transactions dropped from 2.1% of all analyzed transactions in 2019 to just 0.34% in 2020. That’s not just a small drop; it’s more like a belly flop off the diving board. And let’s be honest, it stings!

Scams Making Less Waves

The category that saw the biggest reduction was scams, with a jaw-dropping 71% decrease, resulting in a total of about $2.6 billion. The infamous PlusToken scandal of 2019 definitely monopolized the scam-robbing scene, leaving 2020 with nothing but leftovers.

Ransomware: The Unwelcome Guest

But hold the confetti, friends! Just when we thought we could breathe easy, ransomware decided to crash the party, surging by a mind-boggling 311% from 2019 to 2020. This meant an added loss exceeding $250 million due to these cyber-culprits. Apparently, ransomware thieves are bolder, thanks to some “new strains,” leading to almost $350 million in theft last year.

A Silver Lining: Compliance and Regulation

Fortunately, there’s a silver lining in these dark clouds—Chainalysis insists that the crypto crime outlook has “never been better.” This optimism stems from regulatory advancements and compliance processes tightening around exchanges. In short, an increased emphasis on compliance could soon make it trickier for criminals to turn their stolen digital coins into good old cash. Hey, growth isn’t always about profits!