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Chainalysis' Annual Crime Report Highlights Decrease in Crypto Criminal Cash-Out Services

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Cryptocurrency economy has been known for its association with black market sales, theft, ransomware, and money laundering. Despite the fact that every transaction in the cryptocurrency world is recorded on a blockchain's permanent and unalterable ledger, the industry still attracts criminal elements. However, a new report suggests that recent advancements in blockchain tracing and government crackdowns on illicit activities may be reducing the number of money laundering outlets in the crypto world. Cryptocurrency-tracing firm, Chainalysis, published its annual crime report, which focuses on money laundering. The report shows a consolidation in the crypto criminal cash-out services over the past year, with the fewest number of services used since 2012. Chainalysis found that only five cryptocurrency exchanges handle nearly 68 percent of all black market cash-outs, resulting in an intense narrowing of off-ramps for crypto crime. This can be attributed to an ongoing government crackdown on crypto money laundering and a sign of more enforcement on the way. It's not clear whether the overall amount of crypto crime rose or fell in 2022, but Chainalysis data suggests that criminal use of cryptocurrency increased last year, despite the decline in cryptocurrency exchange rates. This increase could be due to a spike in illegal transactions at sanctioned cryptocurrency exchanges, which may have less to do with a rise in crime than with the US Treasury’s Office of Foreign Asset Control (OFAC) imposing sanctions on major players in the crypto underground. Crypto Chainalysis declined to name the five exchanges it says enabled the majority of cryptocurrency money laundering, as these exchanges may be the targets of ongoing investigations and may not be aware that they are enabling money laundering. The illicit cash-outs often go through intermediaries, such as nested services or dark-web-based money-laundering services, to hide the source of the funds. As law enforcement has cracked down on major mixing services, more criminals are turning to smaller, decentralized mixers, which are harder to seize or disrupt. Despite the challenges, the crackdown on crypto money laundering continues, with the aim of reducing the number of off-ramps for crypto crime. The industry must continue to evolve and implement new technologies to stay ahead of the criminal elements and maintain its integrity.

By Raulf Hernes

If you ask me raulf means ALL ABOUT TECH!!


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