Bitcoin no longer crypto of choice for illicit crypto activity: TRM Labs

According to caller research, less cybercriminals are turning to Bitcoin arsenic their superior method of moving illicit funds, with atrocious actors opting to spell backmost to fiat channels oregon choosing different cryptocurrencies.

Digital plus compliance and hazard absorption steadfast TRM Labs revealed that illicit concern volumes involving Bitcoin (BTC) had fallen importantly implicit the past 7 years, according to its “Illicit Crypto Ecosystem Report,” released connected June 28.

TRM Labs said alternatively a caller multichain epoch has led to a “qualitative leap” distant from Bitcoin arsenic a superior means of moving transgression proceeds. The steadfast besides highlighted that currency and different forms of fiat-related concern stay the “default” means of transgression wealth movements.

“Indeed, currency and adjacent older forms of concern specified arsenic hawala (transferring wealth without physically moving it) stay the default means by which illicit enactment is financed and its proceeds are laundered.”

TRM Labs besides noted that portion illicit enactment involving crypto has increased, “crypto did not invent these transgression forms."

The steadfast reported that astir $2 cardinal successful crypto was stolen done attacks connected cross-chain bridges successful 2022, but precise small of that was Bitcoin.

Charts showing the measurement of Bitcoin utilized crossed assorted types of illicit activity. Source: TRM Labs

“The multi-chain epoch has had a sweeping interaction connected the organisation of illicit crypto measurement arsenic a whole,” it noted, adding that Bitcoin’s stock of illicit transactions plummeted from 97% successful 2016 to conscionable 19% successful 2022.

Furthermore, portion two-thirds of the crypto hack measurement was successful Bitcoin backmost successful 2016, that had fallen to conscionable nether 3% by 2022. The slack was taken up by Ethereum (68%) and BNB Smart Chain (19%), it said.

Meanwhile, Bitcoin was besides erstwhile the “exclusive currency” for violent financing backmost past arsenic well, but by 2022 it had been “all but replaced” by Tron, with 92%, TRM Labs claims.

Additionally, TRM Labs claims that determination has been a 240% summation successful the usage of Tether (USDT) among the panic financing entities that it tracked successful 2022.

Use of USDT and BTC for violent financing. Source: TRM Labs

The latest illicit concern figures successful crypto whitethorn beryllium brighter quality for Bitcoin, which successful caller days looks to beryllium back connected the array for organization adoption.

However, the cryptocurrency saw astatine slightest $7.8 cardinal paid into Ponzi and pyramid schemes, arsenic overmuch arsenic $1.5 cardinal was spent connected darknet markets specializing successful narcotics, and $3.7 cardinal was stolen done DeFi hacks and exploits successful 2022, according to TRM Labs.

Related: North Korea and criminals are utilizing DeFi services for wealth laundering

Earlier this year, Cointelegraph reported that 2022 acceptable a caller grounds for illicit crypto transactions. The full cryptocurrency worth received by illicit addresses topped $20 cardinal past year, according to analytics steadfast Chainalysis.

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