Cryptocrime: Criminals stole a record $32 billion in cryptocurrency in 2021

Introduction

In the early days of cryptocurrencies, criminals would simply cash out using the major exchanges. However, as exchanges have become more sophisticated and law enforcement has cracked down on money laundering, criminals have had to find new ways to cash out their ill-gotten gains.

In 2021, crypto criminals directly stole a record US$32 billion (A$448 billion) worth of cryptocurrency, according to a report by blockchain analytics firm Chainalysis. This is a significant increase from the US$14 billion (A$20 billion) stolen in 2020.

The majority of crypto crime in 2021 was related to DeFi protocols, which are decentralized financial services that allow users to lend, borrow, and trade cryptocurrencies. DeFi protocols are often targeted by criminals because they are less regulated than traditional financial institutions.

Conclusion

Cryptocurrency crime is a major problem that is only getting worse. Law enforcement agencies need to do more to crack down on crypto criminals and exchanges need to do more to protect their users from fraud and theft.