Chainalysis Report: Crypto Scammers Take It Easy As COVID-19 Pandemic Wreaks Havoc

Blockchain analysis firm, Chainalysis has recently issued a report in which it has been found that since March 2020, COVID-19 managed to slash crypto scammers’ revenue by 33%. That said, the firm believes that this doesn’t reflect the entire story.

Key Findings

  • The total daily value sent to cryptocurrency scams significantly dropped by 61% within a span of two weeks (March 13 to 31,2020)
  • Most scam revenue losses have been associated with investment scams and Ponzi schemes
  • Not as many scams in relation to COVID-19 as one would have assumed

Bearing the aforementioned in mind, it turns out that crypto scammers are trying to find different ways to lure and trick investors. The firm has since noted that there are two primary ways in which cryptos scams are currently taking place: phishing and blackmail scams.”>Chainalysis

What are Phishing and Blackmail Scams?

Scammers who consider phishing simply use email or text messages to lure in investors in giving their personal information. In doing so, they might steal passwords, account numbers and other crucial information that could get one illegally into others’ accounts. Here’s an example shared by Chainalysis:

A screenshot of a social media post Description automatically generated

Figure 1. An example of a phishing scam obtained from Chainalysis’s blogpost.

Then there’s blackmail scams, which are also done through emails or text messages. In this situation, individuals are threatened by scammers who claim to have personal information on the victims.

When the 20 most active Ponzi schemes and investment scams were considered, the total weekly value received, and the number of transfers made supposedly accounted for 94% of all scams in 2020. But since COVID-19, the amount transferred supposedly fell, specifically from Feb 23 to March 29, 2020. While this is reassuring, it seems like one can anticipate Ponzi schemes to eventually go back up as an increasing trend was witnessed between March 29 and April 5, 2020.

What’s next?

According to Chainalysis, this is just part 1 of their analysis on how COVID-19 has been affecting the crypto market and scammers. In a recent tweet posted on March 30, 2020, the blockchain analysis firm confirmed that they will be issuing a second part to this analysis.

For those interested in part 2, a webinar titled, “Covid-19 and Crypto Crime” will be live on April 15, 2020 at 11 am ET. Some of the topics that will be emphasized on include, “scams taking advantage of the crisis, ransomware attacks against healthcare providers, and how darknet markets react to a pandemic.” Head of Research, Kim Grauer will be leading this webinar, along with others within the firm, all of whom will also cover ways that the crypto industry can better protect themselves and investors.

To secure a spot, one can start by visiting here.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Nirmala Velupillai
Nirmala Velupillai
Nirmala is a blogger who has been fascinated by the world of technology and its contributions to societal development. While a novice, her eager to learn about the crypto world has led her to write a number of pieces on its positive and negative aspects. On her spare time, she indulges in understanding and building statistical models and enhancing her painting skills.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Compound Protocol to Roll Out Decentralized Oracles Dubbed ‘Open Price Feed'

Compound, one of the most popular defi protocol, is all set to introduce open price feeds for lending on its platform using a decentralized...

$2 Million Slippage & Surge in Ether Price on Uniswap Helps Net $40k in Profit

A Uniswap user was able to profit $40,000 thanks to $2 million of slippage and the price of Ether surging north of 15%. It all...

Irish Govt to Target Cryptocurrencies Use in Money Laundering And Terror Financing

The Irish government aims to implement stricter and more stringent laws to curb money laundering and terrorism financing in its financial system, including digital...

Interactive Brokers to Settle $38 Million in Penalties for Violating AML Procedures

Interactive Brokers LLC, a U.S based brokerage that skyrocketed between 2013 and 2018, has agreed to settle a total of $38 million with the...

Ethereum Gas Price Hasn’t Been This High Since its Launch

The price of Ether is back to making its way to $400 level as it hovers around $391 in the green with just $840...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today