Ransomware gangs had a lucrative 2023, extorting a record-breaking $1.25 billion in ransomware payments. However, in 2024, the narrative changed. Chainalysis, a blockchain analytics firm, recently revealed that ransomware payments dropped 35% to $813 million. This marks a sharp decline, signaling a potential shift in the war against cyber extortion.
A Promising Yet Unexpected Drop
For context, ransomware payments are money victims pay cybercriminals to regain access to locked or encrypted files, systems, or data. This happens when ransomware, a malicious software, takes control of their information. In 2023, Evolve Bank, a prominent case in 2023
Attackers demand a ransom, usually in cryptocurrency, in exchange for a decryption key that restores access. This was seen in the case of Evolve Bank, which was targeted in a cyber-attack by the Russian ransomware group Lockbit in 2023
According to Chainalysis’ 2025 crypto crime report, the beginning of 2024 seemed poised for another record payday for cybercriminals.
Ransomware attacks were rising, and payments were up 2.4% in the first half of the year compared to 2023. Reportedly, one undisclosed victim paid $75 million to the Dark Angels group.
However, as the year progressed, ransomware payments took an unexpected nosedive. By the second half of 2024, fewer victims were paying up, driving down overall extortion numbers.
Law Enforcement and Sanctions Disrupt Ransomware Laundering
Bad actors have traditionally used centralized exchanges to convert stolen cryptocurrency into fiat currency. However, in 2024, this process became more difficult due to sanctions against the Russia-based Cryptex exchange.
Additionally, the German police seized 47 Russian-language crypto exchanges that lacked KYC (Know Your Customer) requirements. This move disrupted important money laundering channels.
With these roadblocks, many ransomware groups hesitated to cash out their earnings. They feared that blockchain analysis tools would expose them, dampening their ability to profit from attacks.
In late October, Ryuki Hayashi, a 25-year-old from Japan, landed in legal trouble for crypto ransomware offenses. He was sentenced to three years in prison for his involvement in creating a crypto asset extortion tool using generative AI.
This case serves as a warning for bad actors that developing tools for crypto extortion can lead to severe legal consequences.
Fewer Victims Are Paying Up
Even though ransomware attacks increased, fewer victims met the attackers’ demands. Chainalysis reported a growing gap between the ransoms demanded and the actual amounts paid.
In the second half of 2024, this gap widened to 53%, meaning that while more organizations were targeted, many refused to pay. Those who did settle typically sent between $150,000 and $250,000, far less than attackers initially demanded.
While ransomware remains a significant threat, the drop in extorted funds signals that the tide may turn against cyber criminals. If the current trend continues, 2025 could bring even more pressure on attackers and fewer payouts for their schemes.
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