Financial crime and fraud have long been a scourge on the global economy, with the enormity of the problem highlighted by the estimated $2 trillion USD in losses annually. The blockchain revolution has opened up new possibilities for tracking and tracing financial operations, offering a unique opportunity to identify suspicious activity and combat financial crime. Unfortunately, as recent events have shown, the economic impact of fraud and crime is still massive.

Nearly half of the businesses are hit by economic crime, with cybercrime the gravest threat. Illicit proceeds from criminal activity are estimated to account for 2-5% of global GDP (around $2 trillion USD), yet less than 1% is ever seized or frozen by law enforcement agencies – the current anti-money laundering regime is not fit to combat a crisis of this scale.
According to professional services firm PwC’s Global Economic Crime and Fraud Survey 2022 Cybercrime is the biggest fraud threat facing most businesses today,
Despite 2022’s crypto market collapse, dozens of enterprises worldwide are still investing in blockchain. This distributed-database technology underpins the entire sector because it helps businesses operate better, faster, or cheaper.
The volume of crime-related transactions rose for the second consecutive year, hitting an all-time high of $20.6 billion, blockchain analytics firm Chainalysis says in its new “Crypto Crime Report.” But that is a small share of total volume of the crypto market: less than 1%.

It is Important to notice that 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. So in this table they don’t include their transaction volumes in our measures of illicit activity because our estimates are based solely on on-chain intelligence. In order to have some proxy and size the outcome, it could be useful to refer to ACFE , along with input from our Advisory Council. They select the five most scandalous fraud stories of the year based on money lost, lives impacted and relevance to the anti-fraud profession.
One of the story with more hype was Crypto Bonnie and Clyde: a New York couple has been arrested on charges of conspiring to launder $4.5 billion in stolen cryptocurrency and conspiring to defraud the US. Officials have seized $3.6 billion, the “largest seizure of cryptocurrency ever by US law enforcement,” according to the DOJ.Other missing part are reported by the Bank for International Settlements in its recent report said that Over $450 billion vanished during the market turmoil following the Terra/Luna collapse in May 2022 alone; another $200 billion was lost in the wake of the FTX bankruptcy in November 2022.

So what next? In addition to the Top 10 Fraud Trends in 2023 we need to notice that even the metaverse is not immune from the problem. An article in the International Financial Law Review.entitled “The metaverse needs to police financial crime,” noted that criminals who “cheat, lie and steal in the real world will do the same in the metaverse” and carry out identity theft, money laundering, and fraud.”

In conclusion, Financial crime and fraud are estimated to total some $2 trillion USD annually. Last year was a tumultuous one for cryptocurrencies, with several major firms collapsing amid allegations of fraud – resulting in a colossal $450 billion disappearing during the market turmoil following the collapse of Terra/Luna in May 2022 and a further $200 billion vanishing following the FTX bankruptcy in November 2022. The ‘Crypto Bonnie and Clyde’ case saw law enforcement seize approximately $3.6 billion in cryptocurrency. This highlights the need to monitor crime, with fraud having a massive impact on the economy in scale and results. Write conclusion These sobering figures demonstrate the need for greater vigilance and scrutiny to reduce the financial impact of fraud and crime. Blockchain technology offers a powerful tool to detect suspicious activity and trace transactions to hold individuals accountable, including the Metaverse. With this in mind, efforts to combat financial crime and fraud must continue to protect the global economy.