From Indian cryptocurrency firms setting up shop in markets like Dubai and the US to the FTX scandal - add to that Post-Ethereum Merge Scam Crimes and Frauds They have been an integral part of the industry. Despite all this fraud, it seems to have decreased in 2022. According to a report by Chainalysis, a blockchain analytics firm, the drop is due to various economic factors that lead to lower prices of digital assets. “Using cold wallets is another easy method that any of the blockchain and bitcoin experts will suggest. Cold wallets are physical devices that are not connected to the Internet. Blockchain-based smart wallets and contracts running on hash codes are being developed. They are highly effective since some functionalities do not allow the alteration of the data in any case. ”, Bharat Patel, President and Director of Yudiz Solutions, a blockchain application development company.
The report further noted that cryptocurrency-related crime was down 15% in volume year-over-year as the sector experienced a significant slowdown in the first few months of 2022. However, the Ronin Network leak in March 2022, which allowed The theft of $615 million in cryptocurrency has demonstrated the continuing security breaches in the world of digital assets.
Caption: Amount received by type of cryptocrime. Source: Chainalysis
Interestingly, according to a Chainalysis report, darknet activity is 43% lower than last year.
According to industry experts, Decentralized finance (DeFi) protocols are vulnerable to hacking. According to Chainalysis, 97% of all cryptocurrencies stolen in the first three months of 2022 were from DeFi protocols. “2022 has seen a shift towards more cryptocurrency being stolen from DeFi platforms than ever before. DeFi's vulnerable structure is due to its open source code. This year, the weak DeFi ecosystem was highlighted due to the crash of the FTX cryptocurrency exchange. Auros, a cryptocurrency trading company, lost 2,400 DeFi loans wrapped in ether (wETH),” said Robert Balazs, co-founder and CEO of ByteX, a cryptocurrency exchange.
In addition, theft increased by 516%, representing $3.2 billion in illegal transactions, and the DeFi sector was once again a concern. “The debacle that took place this year was mainly due to the centralization of resources in a Web3.0 environment. When we started with the notion of true Web 3.0, decentralization was the crux of it. Priorities got mixed up and that led to the saga seen around the world,” added Swapnil Pawar, founder of blockchain platform Newrl.
