Crypto Crime Ransom Value Touches IDR 17.1 Trillion Throughout 2023

As previously reported, in its latest annual analysis of crypto-related crimes, blockchain data platform Chainalyis found that the value received by illegal cryptocurrency addresses until 2023 amounted to USD 24.2 billion or the equivalent of IDR 378.5 trillion (assuming an exchange rate of IDR 15,642 per US dollar) .

This is a significant decrease compared to the all-time high of USD 39.6 billion or equivalent to IDR 619.6 trillion in 2022.

Cybercrime Research Leader at Chainalysis, Eric Jardine, said that the increasing maturity of this class of digital assets is further proven by the fact that crypto crime only accounted for 0.34% of the total volume of on-chain transactions last year.

“Following the SEC's recent landmark decision to approve a BTC spot ETF, there are strong signs the crypto winter is thawing. “Coupled with the significant decline in crypto criminal activity last year, it seems that a new growth phase is about to arrive,” said Jardine in a press release, quoted Tuesday (23/1/2024).

Jardine added that, thanks to blockchain's inherent transparency, analysis tools from companies like Chainalysis can provide regulators, law enforcement agencies, and crypto businesses with the ability to detect and react to malicious activity on the blockchain.

The significant decline in illicit transaction volume was largely due to a sharp decline in crypto fraud and stolen funds, which caused total illicit revenues to fall by 29.2% and 54.3%, respectively.

Interestingly, the decline in stolen funds was largely driven by a sharp decline in DeFi hacks. DeFi is one of the fastest growing and most exciting areas of the crypto ecosystem, largely due to its transparency.

“This drop could represent a reversal of a disturbing long-term trend, and could be a signal DeFi protocols are improving their security practices,” concluded Jardine.