Report: Illicit Crypto Addresses Received $14 Billion in 2021, Only 0.15% of Transaction Volume Associated With Crime

According to the latest information from Chainalysis, the full cryptocurrency worth received by illicit addresses grew to a caller all-time precocious of $14 cardinal successful 2021. Although the caller all-time precocious is astir doubly the $7.8 cardinal that was recorded successful 2020, it represents conscionable 0.15% of the 2021 cryptocurrency transaction volume.

Percentage of Funds Sent to Illicit Addresses Falling

The worth of cryptocurrency-related crimes recorded successful 2021 surged to a caller all-time precocious of $14 billion, a fig that is astir treble the $7.8 cardinal which was received by alleged illicit addresses successful the twelvemonth 2020. Nevertheless, this summation successful the worth of funds transferred to illicit addresses is inactive overmuch little than the mean maturation of the crypto economy, the latest Chainalysis information has shown.

In a caller blog post breaking down the crypto economy’s 2021 transaction measurement of $15.8 trillion, the blockchain investigation steadfast Chainalysis asserts that the maturation successful worth of funds transferred to illicit addresses is not an denotation that the abstraction is present dominated by criminals. Rather, this maturation whitethorn beryllium a hint of conscionable however acold the crypto system has expanded successful 12 months.

To illustrate, the blog station points to the 567% maturation successful crypto transaction measurement which the investigation steadfast is linking to the rising adoption of cryptocurrencies. Chainalysis besides offers its viewpoint connected the increasing spread betwixt illicit enactment measurement and morganatic volume:

In fact, with the maturation of morganatic cryptocurrency usage acold outpacing the maturation of transgression usage, illicit activity’s stock of cryptocurrency transaction measurement has ne'er been lower.

Crypto Crime Impedes Adoption

To enactment its presumption that illicit activity’s stock of cryptocurrency transaction measurement is connected the wane, Chainalysis points to the information which shows that crime-related addresses lone accounted for 0.15% of 2021 volumes. This fig is little than the 0.62% recorded successful 2020 and the 3.37% that was recorded successful 2019.

Despite noting the debased proportionality of transgression crypto transfers comparative to the wide transaction volumes, Chainalysis inactive concedes the “criminal maltreatment of cryptocurrency creates immense impediments for continued adoption.” The station argues that specified maltreatment often “heightens the likelihood of restrictions being imposed by governments, and worst of each victimizes guiltless radical astir the world.”

The blog station besides suggested that instrumentality enforcement agencies are becoming much adept astatine combating cryptocurrency-based crimes. It cites the indictment of respective crypto concern scams by the U.S. Commodity Futures Trading Commission (CFTC) arsenic good arsenic OFAC’s sanctioning of 2 Russia-based cryptocurrency platforms.

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