Cryptocurrency crimes reached an unprecedented $14B worth of money that got siphoned from different accounts and/or got involved in different kinds of illegal activities at a time when regulators are calling for more oversight of this fast-growing sector.
Blockchain research firm Chainalysis said that the volume of cryptocurrencies received by digital wallet addresses linked to illicit activity, including attempted scams, dark web marketplaces and ransomware, jumped 80 percent from a year ago.
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However, this activity represented only 0.15 percent of the total volume of transactions in cryptocurrencies, which is the lowest level to date.
The US-based company indicated that total trading volumes rose to $15.8 trillion in 2021, more than five times what it was in the previous year.
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Digital assets from Bitcoin to non-fungible tokens (NFTs) witnessed a significant increase in demand in 2021 with the embrace of investors and major companies.
New investors entered the market lured by the rapid gains peddled by cryptocurrency proponents as well as the hope that Bitcoin would provide a buffer against high inflation. However, the regulation of these currencies is still mixed, which does not provide sufficient protection for investors from crime.
