The study conducted by Chainalysis nuances the gloomy picture of cryptocurrencies by indicating that the total volume of illicit transactions linked to them was down sharply in 2020, compared with the previous year. In total, these reached almost $10 billion last year.
Fewer scams
Cryptoasset-related criminal activity dropped to 0.34% of global transaction volume in 2020, representing around €10 billion, the study reveals. This is less than in 2019, when it stood at 2.1% of transaction volume ($21.4 billion).
There were fewer scams in 2020, a year marked by the dismantling of the Ponzi PlusToken. This was one of the biggest catches by Chinese authorities, with 194,774 bitcoins seized, representing 1% of the number of bitcoins in circulation worldwide. PlusToken relied on a non-existent cryptocurrency trading platform and lured users with promises of substantial gains in exchange for deposits of at least $500 in assets. In just over a year, the platform managed to recruit 2.6 million members. In the end, 15 people suspected of being behind the scheme were sentenced to between 2 and 11 years' imprisonment and fines of up to $1 million. The sums obtained were confiscated and paid into the Chinese treasury, according to the verdict.
Dark web sales and ransomware attacks
Illegal marketplaces come in second place in the ranking drawn up by Chainalysis, with a volume of funds received approaching $1.7 billion in cryptocurrencies, compared with $1.3 billion in 2019. These cryptocurrency flows from platforms specializing in the sale of drugs, forged documents, stolen personal data or medicines are mainly captured by Russia, China and the USA.
In third place are ransomware attacks, which show a great increase every year. According to the Chainalysis 2020 Crypto Crime Report, ransoms collected by ransomware groups climbed to $350 million in cryptocurrencies in 2020 (+311% on 2019). The estimate is probably much lower than the reality, as many ransoms go unaccounted for. Last year, ransomware hit the headlines and targeted major companies such as Garmin, SPIE, the Aix-en-Provence metropolis and Bouygues Construction. In the wake of these high-profile cases, ANSSI has published a new guide for companies and local authorities wishing to protect themselves against these fast-growing attacks. Indeed, the agency reports having responded to 104 incidents over the first half of 2020.
So, even though the Covid-19 crisis caused cryptocurrency transactions to plummet by almost 20%, the illicit activities financed through them reached $10 billion, which is still relatively small compared to the online drug supermarkets that saw record sales.