Chainalysis, a leading blockchain analytics firm, revealed in its latest report that payments from crypto-related ransom attacks soared to an unprecedented $1 billion in 2023. This marks a substantial increase from the $567 million recorded in the previous year.
The surge in ransom payments is attributed to scammers targeting various institutions, including hospitals, schools, and government offices, for illicit gains. Last year alone, these nefarious actors pocketed a staggering $1.1 billion, underscoring the growing threat posed by cybercrime.
Despite the alarming rise in ransom payments, Chainalysis noted a decline in losses stemming from other crypto-related crimes such as scamming and hacking. This indicates a shift in tactics among cybercriminals, with a greater focus on ransomware attacks for financial exploitation.
Bitcoin, the largest cryptocurrency by market capitalization, experienced a significant price surge, rising by 60% since the end of September to reach $43,134. This bullish momentum was fueled by optimism surrounding the approval of a new U.S. bitcoin exchange-traded fund (ETF) and expectations of interest rate cuts by central banks worldwide.
According to Chainalysis, the allure of high profits and relatively low barriers to entry has attracted an increasing number of individuals to engage in crypto-related crimes. This influx of new players has contributed to the surge in ransom payments witnessed in 2023.
Notably, a November report revealed that the cybercrime group “Black Basta” extorted over $107 million in bitcoin, with a significant portion of the laundered ransom payments flowing through the sanctioned Russian cryptocurrency exchange Garantex.
Furthermore, cryptocurrency theft via cyberheists and ransomware attacks serves as a significant source of funding for illicit activities, including those attributed to North Korea, as highlighted in United Nations reports.
It is important to note that Chainalysis’ figures may underestimate the extent of crypto’s involvement in criminal activities, as they only track cryptocurrency transactions linked to illicit wallet addresses. Payments made for non-crypto-related crimes, such as drug trafficking, are not included in these statistics.
