In 2021, the degree of cryptocurrency-related criminality reached an all-time high, with unlawful addresses receiving $14 billion in bitcoin, beating the previous record established in 2020 by more than 79 percent.
“The raw value of illicit transactions reached its highest level ever in 2021, yet illicit transactions accounted for just 0.15% of cryptocurrency transactions,” as per Chainalysis.
The analytics business expects the 0.15 percent percentage to climb as more crypto crimes are discovered.
For instance, the volume of cryptocurrency transactions was anticipated to be 0.34 percent in the previous year, but it ended up almost tripling to 0.62 percent.
According to Chainalysis, fraudulent crypto income increased by 82 percent to $7.8 billion in 2021. Rug pulls were responsible for almost $2.8 billion of the losses.
However, investors should be aware that a cryptocurrency wallet has the private and public keys necessary to purchase crypto assets, allowing digital signatures to authorize each transaction. Crypto wallets are more secure than cryptocurrency exchanges, which may be hacked. A private key is used to unlock digital currencies from your cryptocurrency wallet.
You should also be aware that if you lose your private key due to a hack or negligence, you will lose all of your money. Someone else might get access to your funds and take your money.