Crypto Fraud Surges 100% to $52.5 Billion in 2024, Stablecoin Freezes Double
1min read Bitrace has released its annual Crypto Crime Report, highlighting a significant increase in cryptocurrency fraud and stablecoin on-chain freezing activities in 2024. The report indicates that the scale of blockchain addresses associated with fraudulent activities has surged, with a particular emphasis on stablecoin embezzlement. The total amount of funds involved in fraudulent activities reached $52.5 billion in 2024, surpassing the combined total of the previous three years from 2021 to 2023.
In addition to the rise in fraud, on-chain freezing activities involving stablecoins have also seen a notable increase. In 2024, there was a significant level of cooperation between stablecoin issuers and law enforcement agencies. Tether and Circle, two major stablecoin issuers, collectively froze stablecoins worth over $1.3 billion on the Ethereum and Tron networks. This freezing scale is double that of the previous three years combined, indicating a more proactive approach to addressing illicit activities within the cryptocurrency space.
The report also notes that regulatory efforts have had a positive impact on the cryptocurrency industry. Major regulatory bodies have shifted from a passive stance to more active intervention, driving the industry towards greater standardization and transparency. This regulatory push has helped to create a safer and more controllable crypto ecosystem, reducing direct fund losses from hacking attacks, platform bankruptcies, and legal penalties. Additionally, enhanced market trust and stability have lowered indirect risks, making the industry more attractive to institutional investors.
Ask Aime: "Is the cryptocurrency industry becoming safer with increased fraud prevention efforts? How are stablecoin issuers and law enforcement cooperating to reduce illicit activities?"
In regions like China Hong Kong, compliance policies have played a crucial role in building a safer crypto environment. Clear legal requirements, customer fund protection measures, and efforts to combat illicit activities have aligned with international standards, further enhancing the region's crypto ecosystem. These measures have not only reduced direct financial losses but also bolstered market confidence, contributing to a more stable and trustworthy cryptocurrency landscape.
