The year 2022 has been turbulent for the crypto markets, with significant price drops in May and June across all cryptocurrencies.
According to a report by blockchain analysis firm Chainalysis, total crypto scam revenue year to date is currently at $1.6 billion, which is a 65% decrease from the same time last year. This decline seems to be connected to cryptocurrencies’ declining prices.
Many DeFi applications run on the Ethereum blockchain and are financial platforms that enable lending in cryptocurrencies outside of traditional banks.
The trend is unlikely to change anytime soon, according to Chainalysis, given the $190 million hack of the cross-chain bridge Nomad and the $5 million hack of several Solana wallets in the first week of August.
The report reads:
“Since January 2022, scam revenue has fallen more or less in line with Bitcoin pricing. […] it’s not just scam revenue falling — the cumulative number of individual transfers to scams so far in 2022 is the lowest it’s been in the past four years. “
An estimated 24% of Finiko’s revenue was generated by the biggest scam of 2022, which has so far netted $273 million in cryptocurrencies. According to the report, a sizable portion of these hackers came from top-tier North Korean hacker organisations like Lazarus Group, which were also responsible for about half of the cryptocurrency that was stolen in hacks.