Chainalysis says a combination of law enforcement actions and better defenses led to less money going out to ransomware actors.

In 2023, ransomware actors intensified their operations, targeting high-profile institutions and critical infrastructure, including hospitals, schools, and government agencies. Major ransomware supply chain attacks were carried out exploiting the ubiquitous file transfer software MOVEit, impacting companies ranging from the BBC to British Airways. As a result of these attacks and others, ransomware gangs reached an unprecedented milestone, surpassing $1 billion in extorted cryptocurrency payments from victims.

Last year’s developments highlight the evolving nature of this cyber threat and its increasing impact on global institutions and security at large.

Every year, we publish our estimates of illicit cryptocurrency activity to demonstrate the power of blockchains’ transparency – these kinds of estimates aren’t possible in traditional finance – and to teach investigators and compliance professionals about the latest trends in cryptocurrency-related crime that they need to know about. What could those estimates look like in a year like 2022? Last year was one of the most tumultuous in cryptocurrency history, with several large firms imploding, including Celsius, Three Arrows Capital, FTX, and others — some amid allegations of fraud.