A recent analysis by TRM Labs has shown a startling concentration of fraudulent crypto activity on the TRON Blockchain. While there has been a general downturn in the volume of illegal crypto transactions, with a reduction to $34.8 billion in 2023, the TRON network has become the staging ground for nearly half of these nefarious acts. This has raised concerns despite the overall illegal crypto volume falling by a third.
Report Highlights Dominance of TRON in Crypto Scams
The research by TRM’s intelligence team underscores that TRON has outpaced other blockchains like Ethereum and Bitcoin in hosting illegal transactions. In particular, the USDT stablecoin on TRON was the most utilized in these transactions, accounting for 1.63% of the illegal volume. This reflects a persistent risk of fraud within the crypto space. Access COINTURK FINANCE to get the latest financial and business news.
Factors Behind TRON’s Appeal to Fraudsters
Industry experts, such as Angela Ang from TRM, attribute TRON’s susceptibility to fraud to its low fees and fast transactions, which are advantageous for money laundering. This could lead to more stringent regulations from oversight bodies to mitigate the risk and protect users.
Despite the prevalence of scams on the TRON network, the overall crypto crime landscape has seen a positive trend. A substantial 30% drop in illegal crypto funds was recorded, from $49.5 billion to $34.8 billion. This decline is partly due to a decrease in the value of assets linked to sanctioned entities and a reduction in losses from crypto attacks and exploitations.
The reduction in crypto crimes, which also includes a significant decrease in the average amount lost per hack, signals a step forward for the industry. It suggests effectiveness in the measures taken by businesses and an increase in public awareness and education on preventing fraud. These improvements hint at a brighter future for the crypto market, with a focus on more secure and trustworthy operations.