Crypto crime hits record $20 billion in 2022

Illicit use of cryptocurrencies hit a record $20.1 billion last year as transactions involving companies targeted by US sanctions skyrocketed, data from blockchain analytics firm Chainalysis showed on Thursday.

The cryptocurrency market floundered in 2022, as risk appetite diminished and various crypto firms collapsed. Investors were left with large losses and regulators stepped up calls for more consumer protection.

Even as overall crypto transaction volumes fell, the value of crypto transactions related to illicit activity rose for the second year running, Chainalysis said.

Transactions associated with sanctioned entities increased more than 1,00,000-fold in 2022 and made up 44 per cent of last year’s illicit activity, Chainalysis said.