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Ransomware crimes come back to haunt crypto industry in 2023

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The latest report by blockchain data platform Chainalysis, which revealed a considerable drop in cryptocurrency-related crimes, injected a lot of optimism in the market. After all, apart from the wild swings in prices of these digital assets, the other argument vehemently put against their adoption are the numerous incidents of scams.

However, while the scam revenue clearly plunged in 2023, ransomware attacks reared their ugly heads again. Attackers extorted $449 million from victims in the first six months of June, roughly 60% higher than the first half of 2022.

The report mentioned that at the prevailing rate, 2023 was on track to become the second-worst year for this category of crypto crimes, trailing only the disastrous 2021.

Source: Chainalysis

Ransomware is a type of malware attack in which the attacker locks and encrypts the victim’s data, important files and then demands a ransom to unlock and decrypt the data. Exploited vulnerability, compromised credentials and malicious emails were found to be the root causes of ransomware attacks, as per a recent report by cybersecurity firm Sophos. Ransomware has been one of the major elements of the cybercriminal ecosystem over the years.

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Cryptocurrencies have been widely criticized for being one of the key factors in abetting ransom attacks. While transactions on a blockchain network are traceable, there is no way to associate an ID with the addresses and wallets. Because of the anonymity, unscrupulous players send funds back and forth from one wallet to another, making crypto an attractive mode for ransom payments.

According to an earlier report by Chainalysis, attackers have increasingly asked victims to pay in Monero [XMR]. This makes matters worse because in contrast to Bitcoin [BTC], Monero is completely anonymous and tracking gets more difficult.

The uptick in ransomware revenue in 2023 was reason for alarm, as the decline in 2o22 had provided much-needed reprieve and created the impression that the gravity of such assaults would only diminish.

Chainalysis’ report attributed the rise to what it called as “big game hunting” wherein attackers targeted large-scale organizations to steal huge sums of money. As evident in the chart below, there was a substantial increase in the number of very large ransom payouts in H1 2023 when compared with the first half data of last three years.

Source: Chainalysis

However, there was growth at both ends of the spectrum. The left side of the graph showed that attackers were successful in launching small attacks as well.

It is important to note that new ransomware versions, often known as “strains,” emerge on a regular basis. And attackers can use any of these countless strains available to conduct an assault.

The report showed that low-level strains such as Dharma and Phobos, which are typically used for smaller targets, were active in 2023. In addition, sophisticated strains like BlackBasta and Cl0p, which hit high-value targets, also grew in prominence. This added weight to the narrative that there was an all-out assault in 2o23.

2021, as highlighted earlier, was the worst year on record for ransom attacks with nearly $940 million getting extracted. This alarmed stakeholders into putting remedial practices in place. These included plugging loopholes in cybersecurity and data backup practises, and sanctions on companies willing to pay ransom to attackers. As a result, the total ransomware revenue in 2022 plummeted by 46%.

However, attackers were up to this task in 2023. As most of the organizations refused to concede to their demands, these players increased the size of the ransom from companies who were still willing to pay, according to Andrew J. Davis of cyber security firm Kivu. In several cases, attackers went so far as to harass employees of victim companies.

Russia leads the world in ransomware attacks. Conti, believed to be based in Russia, was the biggest ransomware strain by revenue in 2021. They extorted at least $180 million from victims.

Chainalysis attributed the downfall in ransomware industry in 2022 to the Russia-Ukraine conflict. This limited the capabilities of hackers to conduct such attacks. However, with the geopolitical heat subsiding in 2023, these attackers were back in full force.

Security experts from the crypto space had mixed feelings on the report’s findings. Noah Perlman, Chief Compliance Officer of Binance, praised the overall decrease in criminal incidences. He was, however, concerned about the rise in ransomware crimes.

Initial thought on reading @chainalysis mid-year update: pleased to see crypto crime as whole in a sharp decline this year; surprised that ransomware has risen YOY (would have expected these to move in tandem). Although not on pace for the worst year ever, still concerning that…

— Noah Perlman (@NoahBPerlman) July 12, 2023

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    CRYPTO SCAM RECOVERY SUCCESSFUL – A TESTIMONIAL OF LOST PASSWORD TO YOUR DIGITAL WALLET BACK. My name is Robert Alfred, Am from Australia. I’m sharing my experience in the hope that it helps others who have been victims of crypto scams. A few months ago, I fell victim to a fraudulent crypto investment scheme linked to a broker company. I had invested heavily during a time when Bitcoin prices were rising, thinking it was a good opportunity. Unfortunately, I was scammed out of $120,000 AUD and the broker denied me access to my digital wallet and assets. It was a devastating experience that caused many sleepless nights. Crypto scams are increasingly common and often involve fake trading platforms, phishing attacks, and misleading investment opportunities. In my desperation, a friend from the crypto community recommended Capital Crypto Recovery Service, known for helping victims recover lost or stolen funds. After doing some research and reading multiple positive reviews, I reached out to Capital Crypto Recovery. I provided all the necessary information—wallet addresses, transaction history, and communication logs. Their expert team responded immediately and began investigating. Using advanced blockchain tracking techniques, they were able to trace the stolen Dogecoin, identify the scammer’s wallet, and coordinate with relevant authorities to freeze the funds before they could be moved. Incredibly, within 24 hours, Capital Crypto Recovery successfully recovered the majority of my stolen crypto assets. I was beyond relieved and truly grateful. Their professionalism, transparency, and constant communication throughout the process gave me hope during a very difficult time. If you’ve been a victim of a crypto scam, I highly recommend them with full confidence contacting: 📧 Email: [email protected] 📱 Telegram: @Capitalcryptorecover Contact: [email protected] 📞 Call/Text: +1 (336) 390-6684 🌐 Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

  • 14.10.25 08:46 robertalfred175

    CRYPTO SCAM RECOVERY SUCCESSFUL – A TESTIMONIAL OF LOST PASSWORD TO YOUR DIGITAL WALLET BACK. My name is Robert Alfred, Am from Australia. I’m sharing my experience in the hope that it helps others who have been victims of crypto scams. A few months ago, I fell victim to a fraudulent crypto investment scheme linked to a broker company. I had invested heavily during a time when Bitcoin prices were rising, thinking it was a good opportunity. Unfortunately, I was scammed out of $120,000 AUD and the broker denied me access to my digital wallet and assets. It was a devastating experience that caused many sleepless nights. Crypto scams are increasingly common and often involve fake trading platforms, phishing attacks, and misleading investment opportunities. In my desperation, a friend from the crypto community recommended Capital Crypto Recovery Service, known for helping victims recover lost or stolen funds. After doing some research and reading multiple positive reviews, I reached out to Capital Crypto Recovery. I provided all the necessary information—wallet addresses, transaction history, and communication logs. Their expert team responded immediately and began investigating. Using advanced blockchain tracking techniques, they were able to trace the stolen Dogecoin, identify the scammer’s wallet, and coordinate with relevant authorities to freeze the funds before they could be moved. Incredibly, within 24 hours, Capital Crypto Recovery successfully recovered the majority of my stolen crypto assets. I was beyond relieved and truly grateful. Their professionalism, transparency, and constant communication throughout the process gave me hope during a very difficult time. If you’ve been a victim of a crypto scam, I highly recommend them with full confidence contacting: 📧 Email: [email protected] 📱 Telegram: @Capitalcryptorecover Contact: [email protected] 📞 Call/Text: +1 (336) 390-6684 🌐 Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

  • 14.10.25 08:46 robertalfred175

    CRYPTO SCAM RECOVERY SUCCESSFUL – A TESTIMONIAL OF LOST PASSWORD TO YOUR DIGITAL WALLET BACK. My name is Robert Alfred, Am from Australia. I’m sharing my experience in the hope that it helps others who have been victims of crypto scams. A few months ago, I fell victim to a fraudulent crypto investment scheme linked to a broker company. I had invested heavily during a time when Bitcoin prices were rising, thinking it was a good opportunity. Unfortunately, I was scammed out of $120,000 AUD and the broker denied me access to my digital wallet and assets. It was a devastating experience that caused many sleepless nights. Crypto scams are increasingly common and often involve fake trading platforms, phishing attacks, and misleading investment opportunities. In my desperation, a friend from the crypto community recommended Capital Crypto Recovery Service, known for helping victims recover lost or stolen funds. After doing some research and reading multiple positive reviews, I reached out to Capital Crypto Recovery. I provided all the necessary information—wallet addresses, transaction history, and communication logs. Their expert team responded immediately and began investigating. Using advanced blockchain tracking techniques, they were able to trace the stolen Dogecoin, identify the scammer’s wallet, and coordinate with relevant authorities to freeze the funds before they could be moved. Incredibly, within 24 hours, Capital Crypto Recovery successfully recovered the majority of my stolen crypto assets. I was beyond relieved and truly grateful. Their professionalism, transparency, and constant communication throughout the process gave me hope during a very difficult time. If you’ve been a victim of a crypto scam, I highly recommend them with full confidence contacting: 📧 Email: [email protected] 📱 Telegram: @Capitalcryptorecover Contact: [email protected] 📞 Call/Text: +1 (336) 390-6684 🌐 Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

  • 18:07 crypto

    Cryptocurrency's digital realm presents many opportunities, but it also conceals complex frauds. It is quite painful to lose your cryptocurrency to scam. You can feel harassed and lost as a result. If you have been the victim of a cryptocurrency scam, this guide explains what to do ASAP. Following these procedures will help you avoid further issues or get your money back. Communication with Marie ([email protected] and WhatsApp: +1 7127594675) can make all the difference.

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