Major problems
At least $3.7 Billions stolen in 2022
Despite the downturn of the cryptocurrency market in 2022, the illicit activities brought malicious actors a new record of $20 Billions stolen funds according to on-chain monitoring firm Chainalysis. As shown above, even when the authorities (U.S. Office of Foreign Asset Control in most cases) did their job and sanctioned addresses containing more than $10 Billions, the space left for Scams (dark blue) and Hacks (Stolen funds - yellow) is still significant. The blockchain security firm TRM Labs precisely determined that this type of activities made a $3.7 Billions illicit profit to hackers and scammers, with 80% of these funds being stolen in the DeFi space, where legit customers and open-source protocols try to build a next generation of web in plain sight.
If in the case of malicious actions as Terrorism financing, hostile states financing (Sanctions), Human Trafficking or Fraud shop and Darknet market there needs to be a legal action developed by a state actor in order to restrict them, for the scams and hacks case a customer protection solution that assures real-time compliance with the state's acts regarding the DeFi space and which has a proactive approach in discovering, flagging and exposing malicious practices could be sufficient to minimize these illicit profits and discourage threat actors engaging in such activities.
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