Record-Breaking: Crypto Ransom Payments Surge to $1 Billion in 2023, Reveals Chainalysis

According to blockchain analytics firm Chainalysis, payments stemming from crypto-related ransom attacks surged nearly twofold in 2023, reaching a staggering $1 billion (approximately Rs. 8,304 crore). This marks a significant increase compared to the previous year.

Scammers, particularly targeting institutions like hospitals, schools, and government offices, amassed a total of $1.1 billion (approximately Rs. 9,133 crore) in ransom payments in 2023, a notable rise from $567 million (approximately Rs. 4,708 crore) in 2022.

Despite this alarming spike in ransom payments, Chainalysis highlights a contrasting trend in other crypto-related crimes. Specifically, losses attributed to activities such as scamming and hacking experienced a decline throughout 2023.

Bitcoin, the largest cryptocurrency, has jumped 60 percent since the end of September to $43,134 (roughly Rs. 35,81,500) on enthusiasm about a new US Bitcoin ETF and on signs central banks around the world will begin trimming interest rates.

“An increasing number of new players were attracted by the potential for high profits and lower barriers to entry,” Chainalysis said.”Big game hunting” has become the dominant strategy over the last few years, with a dominant share of all ransom revenue volume made up of payments of $1 million (roughly Rs. 8.3 crore) or more, Chainalysis added.

Cryptocurrency theft via cyberheists and ransomware attacks is also a significant source of funding for North Korea, according to UN reports.Chainalysis’ figures undervalue crypto’s role in all crime as it only tracks cryptocurrency sent to wallet addresses identified as illicit. It does not include payments for non-crypto-related crime such as crypto used in drug trafficking deals.