Arbeitspapier

Cybercrime on the Ethereum Blockchain

We propose a taxonomy of cybercrime on the Ethereum blockchain and examine how cybercrime impacts victims' risk-taking and returns. Our difference-in-differences analysis of a sample of victims and matched non-victims suggests that victims increase their long-term total risk-taking and earn lower risk-adjusted returns in the post-cybercrime period. Victims' long-term total risk-taking increases because they increase diversifiable risk in the long term. The increased diversifiable risk correlates with victims' withdrawal from altcoins after cybercrime. At the same time, the reduction in risk-adjusted returns correlates with increased trading activity and churn, due plausibly to managing cybercrime exposure. In the cross-section of Ethereum addresses, we show that the most-affluent victims take a systematic approach to restore their pre-cybercrime wealth level, while the least-affluent victims turn into gamblers. Finally, a parsimonious forensic model explains a good part of the addresses' probability of being involved in cybercrime, both on the victim and the cybercriminal side.

Sprache
Englisch

Erschienen in
Series: CESifo Working Paper ; No. 10598

Klassifikation
Wirtschaft
Information and Market Efficiency; Event Studies; Insider Trading
Investment Banking; Venture Capital; Brokerage; Ratings and Ratings Agencies
Corporate Finance and Governance: General
Entrepreneurship
New Firms; Startups
Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
Thema
Ethereum blockchain
market manipulation
financial fraud
token investment scam
cybercrime
cryptocurrency

Ereignis
Geistige Schöpfung
(wer)
Hornuf, Lars
Momtaz, Paul P.
Nam, Rachel J.
Yuan, Ye
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and ifo Institute (CESifo)
(wo)
Munich
(wann)
2023

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Hornuf, Lars
  • Momtaz, Paul P.
  • Nam, Rachel J.
  • Yuan, Ye
  • Center for Economic Studies and ifo Institute (CESifo)

Entstanden

  • 2023

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