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Cryptocurrency Markets Engaged in $100 Billion of Illicit Funds Since 2019: Report — TradingView News
Fresh data from an on-chain analytics firm Catenalysis discovered that the nine-digit value of illicit funds have found their way into the digital assets industry.
What happened: Nearly $100 billion in illicit funds have circulated in the cryptocurrency market since 2019, according to Bloomberg, citing a study by Chainalysis. This includes significant use of stablecoins and centralized exchanges. The former are increasingly used by malicious actors and now account for the majority of illicit transaction volumes in the cryptocurrency space. More than half of these questionable funds end up on centralized exchanges, the study found.
Global authorities are tightening regulations on stablecoins and digital asset platforms to combat crimes such as money laundering and terrorist financing. However, criminals continue to find ways to circumvent these rules. “The ecosystem is constantly changing,” he said. Kim GrayDirector of Research at Chainalysis.
Stablecoins aim to maintain a stable value of $1, backed by reserves of money and bonds. Centralized exchanges manage customer assets, while decentralized alternatives allow users to control their tokens. These elements are crucial to the digital asset market.
Because of these illicit flows, investigators have targeted the cryptocurrency sector. Binancethe largest centralized exchange, is now under US supervision after a Penalty of $4.3 billion for violations of anti-money laundering and sanctions.
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Illegal funds from darknet markets, fraud, ransomware and other sources are primarily concentrated in five centralized exchanges, according to Chainalysis. Criminals also use decentralized financial services, gambling sites, cryptocurrency mixers and blockchain bridges to launder money.
The market value of stablecoins has risen to over $160 billion from around $29 billion in early 2021, with Tether Holdings Ltd. Public Companyis dominant at 69%, followed by Limited Liability Companyis at 21%, according to DeFiLlama data.
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Because matterThe revelation of $100 billion in illicit cryptocurrency flows highlights the ongoing fight against bad actors in the digital asset sector.
Just last month, the UK’s Financial Conduct Authority (FCA) arrested two individuals involved in an unregistered cryptocurrency exchange worth over $1.2 billion. Elsewhere, the infamous case of Ruja Ignatova, the so-called “Crypto Queen” behind the OneCoin scam, shows the deep ties between cryptocurrency fraud and organized crime.
It remains to be seen whether regulation such as the pending FIT21 cryptocurrency bill can address these issues.
Read later:
- Bitcoin Soars to $59K, Then Retraces Gains: What’s Happening?
This content was produced in part with the help of artificial intelligence tools, and was reviewed and published by Benzinga editors.
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