Data shows that illicit crypto flows from Japanese exchanges dropped by 69% in 2024.
The number of scams and fraud related to Japanese cryptocurrency exchanges decreased significantly during the first half 2024. data Chainalysis, a blockchain analytics company. Ethereum prices fell by 69% after reported flows to clusters that were identified as frauds.ETHBitcoin has dropped by nearly half (BTCCompare the figures to those of 2023.
In 2023, Japanese Exchanges facilitated the inflow of BTC and ETH worth $44.6 millions in scams. Data shows that ETH scam-related inflows dropped from $13.7 to $5.8 million during the first half of 2024. Data shows that fraudulent activity not related to crypto-native schemes, such as non-crypto fraud, has also shown a decrease. ETH fraud inflows have fallen to a mere $1,171 while BTC fraud inflows are down to just $18,8 million.
This report highlighted the latest laundering methods, such as using decentralized exchanges and consolidation wallets to convert ETH (ethereum) into stablecoins.USDT).
“Considering the rapid pace at which money launderers use new wallet addresses, it’s not easy to track them all individually in real-time, but we can still identify common consolidation points from clusters we’ve identified to estimate the magnitude of these illicit activities.”
Chainalysis
Chainalysis, which emphasized the need for proactive countermeasures to these tactics, said that highly sophisticated actors continue to adapt their strategies to avoid detection. This includes using new wallet addresses, cross-chain tools and other methods.
The drop in crypto-scams is a result of growing concerns about vulnerabilities beyond cryptocurrency. Attention has been drawn to recent fraud cases that involved municipal digital currencies.
Osaka police arrested Seven individuals have been charged with exploiting Toyonaka City regional currency. “machikane points,” Using stolen credit card numbers to fraudulently obtain premium rewards.
Multiple municipalities across the country have reported fraudulent activity involving digital currencies. This highlights the dangers associated with rapid adoption. More than 219 municipalities will issue regional digital currencies by 2023. That’s up from only 32 in 2019 but, as experts point out, such systems have become increasingly targeted.
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Source: crypto.news
