The attacks were carried out by a range of actors from big syndicates, to smaller groups and even individuals

Cybercriminals stole nearly $1.48 billion worth of crypto through ransomware attacks in 2023, a 94% Year-on-Year rise or the most that has been stolen in all of crypto forensics company Chainalysis’ history of reporting on crypto crimes.

Chainalysis says that 2023 was a “watershed year” for ransomware with “growing intensity and sophistication of attacks”, in which there were 538 new ransomware variants last year alone. The attacks were carried out by a range of actors from big syndicates, to smaller groups and even individuals.

This finding is part of Chainalysis’ yearly crypto crime report, which details the data and research behind crypto crimes over a year.

The total funds stolen by ransomware in 2023 is a 94% rise of the amount stolen in 2022, which stood at $567 million, but Chainalysis says that 2022 sticks out as an “anomaly, not a trend”.

The decline in funds stolen in 2022 could be attributed to geopolitical events, and the infiltration of the Hive ransomware strain by the Federal Bureau of Investigation, which prevented $130 million in theft.

Looking at 2023, some ransomware strains have grown more sophisticated. A strain known as Cl0p, has been able to steal larger volumes of funds, up to $1 million at a time or more. Another strain known as Phobos, has adopted a Ransomware-as-a-Service (RaaS) model, in which outsiders can access the malware to carry out attacks, and in exchange pay for the strain’s core operators a cut of the proceeds.

In the meantime, the stolen crypto funds have largely ended up in centralised exchanges, but 2023 saw alternatives like instant exchangers, bridges and gambling services being used.

Chainalysis attributes this to the implementation of more robust AML/KYC policies within centralised exchanges.