Some media coverage of Chainalysis report on crypto crime takes a surprising bias
Chainalysis today published a preview of its 2022 Crypto Crime Report, with the full version due to be published in February. Some initial media articles have already been published in response. It is some surprise to read the very negative slant on crypto given the overall message that crypto crime “is becoming a smaller and smaller part of the cryptocurrency ecosystem.”
It could well be argued that media coverage of the cryptocurrency sector across the world’s media often contains a negative bias, tending to concentrate on anything at all that might add to the public perception that crypto is a bad thing and not for the average investor.
The title of the Chainalysis preview report reads:
“Illicit Transaction Activity Reaches All-Time High in Value, All-Time Low in Share of All Cryptocurrency Activity”
To any reasonably minded reader, having read the report preview, it must surely be perceived that the overall trend in crime in crypto is shown as dwindling. Granted that the value taken from crime has increased, but it must be noted that this is an ever decreasing share of all cryptocurrency transactions.
Blockchain by its very nature is transparent, therefore, for any illegal activity to carry on undetected for any length of time is unlikely. Also, once a crime is committed, there remains a trail that can be followed, making law enforcement’s job very much easier than in cases involving fiat currencies.
News headlines that just put forward a negative bias are unfairly helping to confuse the public perception of crypto. The following headlines are just a flavour:
“Report: Crypto crime hits all-time high in 2021”
“Over USD 14 bln worth of crypto stolen in 2021”
Source: The Paypers
“Crypto crime hits all-time high as $14bn goes to fraudsters in 2021”
Source: Financial News London
It should probably be noted that these kinds of headlines do still have a ‘click bait’ kind of effect on the general public, although this is a poor excuse for some outlets that print biassed content that conforms to the title.
Obviously, actual crime within crypto must not be downplayed, and any illegal activities need to be rooted out. The report preview highlighted various areas in crypto where more could be done. These included scams such as ‘rug pulls’, (a relatively new phenomenon) which were said to have almost accounted for the entire crime proceeds increase from 2020 to 2021.
However, the report does highlight that around 90% of all the rug pull proceeds came from just one centralised exchange called Thoden, where the CEO went missing shortly after the exchange froze all investor funds.
There are many, many axes to grind out there that would love to see the crypto industry ridiculed, painted black, and suppressed as much as possible. Many in the existing financial system possess such axes.
This is why it is important that well respected companies such as Chainalysis continue to give an honest and detailed view of the crypto sector as a whole, and that companies like this carry on trying to educate the public on how blockchain technology, allied to certain cryptocurrencies can provide a secure and profitable sector for safe investments.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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