Nearly all of cryptocurrency transaction quantity, roughly 99.6%, is used for authorized functions.
That is in response to a brand new crypto crime report by blockchain analytics agency Chainalysis, which discovered that the whole worth of cryptocurrency despatched to illicit addresses dropped to $24.2 billion in 2023 — down from $39.6 billion in 2022.
And the 2022 determine was inflated by $8.7 billion in FTX creditor claims, after the Sam Bankman-Fried-led startup collapsed.
In 2023, illicit cryptocurrency transactions accounted for simply 0.34% of all cryptocurrency quantity in 2023, down from 0.42% in 2022 and a major lower from 1.3% in 2019.
The findings are at odds with public statements made by outstanding enterprise leaders like JPMorgan Chase & Co. JPM CEO Jamie Dimon, who recently testified before Congress about cryptocurrency getting used for functions like “intercourse trafficking, tax avoidance, anti-money laundering, terrorism financing.”
Crypto fans, including Edward Snowden, clapped again and mocked Dimon for what they perceived as an alarmist take.
It is value noting, nonetheless, that the Chainalysis figures don’t embody funds derived from non-crypto native crime, potential market manipulation or funds related to crypto cash laundering.
The report solely consists of funds stolen in crypto hacks and funds despatched to addresses recognized as illicit.
Learn Additionally: Cryptocurrency Scandal: $20.1B In Illicit Transactions Exposed
Nonetheless, crypto-native crime pales compared to the monetary trade at giant. The latest International Monetary Crime Report by Nasdaq states that in 2023 greater than an estimated $3.1 trillion in illicit funds circulated via the worldwide monetary system. Drug trafficking ($782.9 billion) and human trafficking ($346.7 billion) accounted for the utmost share whereas terrorist financing stood at $11.5 billion.
The Chainalysis report highlights that Bitcoin BTC/USD remains to be utilized in illicit transactions (i.e., exercise carried out within the Darkish Net), however the quantity has been persistently falling for the previous 5 years. It was the main cryptocurrency used amongst cybercriminals till 2021 — primarily resulting from its excessive liquidity nature. However over the previous two years, stablecoins have taken the spot and are now used for finishing up illicit transactions alongside their dominance in professional actions available in the market. The usage of Tether USDT/USD for organized crime is a testament to that.
Learn Subsequent: From Casinos To ‘Slaves’ – UN Report Details Tether’s Role In Organized Crime
Picture: Pixabay
