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

January 31, 2023 By Raulf Hernes

(Image Credit Google)

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!!

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

Walmart's GenAI Search Engine: Challenging Google's Dominance in Retail Search

Introducing the MSI Claw Handheld: Your Ultimate Gaming Companion

Uber Increases In-App Ads, Prompting Mixed Reactions from Customers

Apple's iOS 18: A Leap into the AI Era

Google's Regular Pixel 8 Won't Get Gemini Nano AI

MacBook Air M3 Makes Amends for M2's Storage Blunder

Samsung Unveils the Galaxy M15 5G

Elon Musk's xAI to Open-Source Chatbot Grok

Contra: Operation Galuga - A Modern Run-and-Gun Classic

Musk Confirms X's TV App Arrives This Week

The 3CX supply chain attack is now affecting cryptocurrency businesses.

Bitzlato, cryptocurrency exchange is accused of working with ransomware organizations; founder arrested

CryptoWatch: The 'Unsellable' NFT Marketplace and FTX's Court Hearing Events

Crypto Mining Banned By Microsoft in Azure

Is the Crypto Market Headed for a Winter Recession?

SEC & CFTC investigate Three Arrows Capital, here's why