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Coronavirus Hits Crypto Scammers, Allegedly Obliterates Over Thirty Three Percent Revenues

The economic aftermath of the coronavirus eruption is even thrashing the cryptocurrency scammers, as per forensics firm Chainalysis.

On Friday, Chainalysis published a research showing gains made through digital asset scams have fallen significantly since the beginning of 2020. On a 7-day moving average (MA), revenue earned by scammers dropped from around eight hundred thousand USD worth of cryptocurrency in the mid of January to under three hundred thousand USD at the start of April. This entire drop is allegedly due to the dramatic market plunge in this year’s first quarter.

Chainalysis concluded that the significant sell-off in virtual currencies was stimulated by the COVID-19. Furthermore, the total market capitalization dropped by around one hundred billion USD in mid-March and had a knock-on repercussion on the illegit revenues made by crypto scammers.

In the report, Chainalysis mentioned,

“We believe scammers are still receiving those same payments from roughly the same number of victims per month. The payments are just worth less now due to cryptocurrency price drops.”

The report added,

“In short, while COVID-19 is providing phishing and blackmail scammers with new fraudulent stories to entice victims, the cryptocurrency price drops spurred by the pandemic have drastically reduced the revenue of the Ponzi schemes and investment scams that make up most cryptocurrency scamming activity.”

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