The decline in the cryptocurrency market, caused by macroeconomic factors, has attracted attention since the first quarter of 2022. However, this is not the only problem.
CipherTrace recently reported that the spontaneous growth in the legitimate use of cryptocurrencies is eclipsing their use for illicit activities. It goes on to say that illegal use accounted for just 0.15% of cryptocurrency transaction volume in 2021.
Despite this decline in total transaction volume, blockchain data platform Chainalysis has revealed an increase in some illegal activities. In response, he announced his “Crypto Incident Response Program,” a 24-hour hotline available to victims of cyberattacks.
Crypto Incident Reporting Service
June 22 mail On its website, Chainalysis stated that illegal activities such as stealing funds through hacks and ransomware are on the rise. He noted this as a security risk that could expose users to fraud and lead to a lack of trust in the ecosystem.
As detailed in the post:
“The Rapid Response Service is designed for organizations that have been the targets of a cyberattack or unauthorized network intrusion related to the theft or demand for cryptocurrency.”
The response service will operate through a 24-hour hotline, through which victims of cyberattacks can receive immediate support.
Victims will be sent to an expert investigation team to help trace the stolen funds. However, if funds have been transferred, the team will contact law enforcement and an asset recovery attorney to recover them.
Hacks, ransomware at an all-time high
An analysis in a website post showed that ransomware attackers made $731 million in 2021. Kim Grauer, head of research at Chainalysis, also said that the average ransomware payment jumped 34% in 2021 as criminals pursued larger targets.
In 2022, there were several hacks and exploitation that led to the loss of funds. According to cryptocurrency security company Immunefi, hackers made more than $1.2 billion in the first quarter of 2022 instead of $154 million lost in the first quarter of 2021.
In addition, the majority of hacks were recorded on cross-bridge platforms. Wormhole and Ronin alone make up for the lion’s share of the cryptocurrency losses that occurred in the first quarter of 2022.
Credit : cryptoslate.com