• According to a report by blockchain intelligence firm Crystal Blockchain, cryptocurrency payments to ransomware hackers only totaled $16 million in 2021, compared to nearly $74 million the year before.
• Analysis of on-chain activity shows that crypto services with a high money laundering risk score—meaning they receive funds from scams and cybercrime more often than others—are seeing a drop in popularity.
• Crypto exchanges and services that manage to keep “dirty” crypto out have been further tightening anti-money laundering policies, effectively scaring away criminal actors.
Cryptocurrency payments to ransomware hackers have declined significantly in 2021, according to a report by blockchain intelligence firm Crystal Blockchain. The report found that payments in cryptocurrency to ransomware hackers totaled a mere $16 million, compared to nearly $74 million USD in 2021.
The decline in cryptocurrency payments to ransomware hackers may be due to the rise in ransomware attacks since 2021. This year, the notorious Conti ransomware gang, known for terrorizing U.S. hospitals during the COVID-19 pandemic, ceased operations, but new groups are constantly emerging.
According to the report, analysis of on-chain activity shows that crypto services with a high money laundering risk score—meaning they receive funds from scams and cybercrime more often than others—are seeing a drop in popularity. Nick Smart, Crystal’s director of blockchain intelligence, stated that it may be too early to conclude that ransomware attacks are in permanent decline.
The report also found that crypto exchanges and services that manage to keep “dirty” crypto out, have been further tightening anti-money laundering policies, effectively scaring away criminal actors. The volume of funds sent to low-risk exchanges from scams fell by 24% in 2022 compared to 2021.
Overall, while cryptocurrency payments to ransomware hackers have declined significantly in 2021, the threat of ransomware attacks remains. Therefore, it is important for organizations to take steps to protect their data, such as using strong encryption, regularly updating their systems, and implementing a robust backup and recovery plan. It is also important for organizations to remain vigilant and monitor for any suspicious activity on their networks. Finally, organizations should not pay ransom demands if they are targeted, as this could encourage further attacks.