After naïve newbies leave the market, crypto frauds decrease by 65%, according to Chainalysis

The biggest fraud of 2022, according to Jardine, has so far only netted $273 million and is associated with the cannabis investment site JuicyFields.io

After naïve newbies leave the market, crypto frauds decrease by 65%, according to Chainalysis
The analyst said that the relatively significant PlusToken and Finiko scams in 2021, which generated $3.5 billion in total scam income

The total revenue generated by cryptocurrency scams year to date is currently estimated to be $1.6 billion, according to a Chainalysis report published on August 16, as reported by Cointelegraph. This represents a 65% decrease from the same period last year, which is thought to be related to the falling prices of cryptocurrencies.

“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,” the report stated.

The report’s author, Eric Jardine, Cybercrimes Research Lead at Chainalysis, argues that bull markets, when investment opportunities and outsized returns are most alluring to victims, are when frauds on cryptocurrency investors are most likely to succeed. Jardine also proposed that during bull markets, the number of new, inexperienced crypto users is often larger, increasing their vulnerability to scams.

The analyst said that the relatively significant PlusToken and Finiko scams in 2021, which generated $3.5 billion in total scam income, distort the statistics, the Cointelegraph noted.

The biggest fraud of 2022, according to Jardine, has so far only netted $273 million and is associated with the cannabis investment site JuicyFields.io, which has purportedly locked investors out of their accounts on its cannabis-focused “e-growing” service.

While scam revenue has decreased this year, Jardine points out that cryptocurrency-based hacking has defied the trend, rising by 58.3% to $1.9 billion through July 2022 (a figure that excludes the $190 million Nomad bridge hack that started on August 1).

(With insights from Cointelegraph)

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