Chainalysis says the illegal use of cryptocurrency is at an all-time high
CryptoFácil – The cryptocurrency market has been the target of increasing illicit activities. According to a new report by Chainalysis, the volume of illicit transactions reached an all-time high of $20.1 billion in 2022. Although the market has seen a downturn, the volume of illegal activity has increased for the second time in a row.
Despite the inherent transparency of blockchains, the industry has room for improvement in this regard. There are opportunities to correlate passive off-chain data with on-chain data to provide better visibility and transparency into all on-chain transactions in DeFi. “
According to the report, 44% of the volume of illegal transactions came from activities associated with sanctioned entities. This comes in a year when OFAC has issued some of the most ambitious and difficult-to-enforce crypto sanctions.
Cryptocurrency exchange Garantex, which accounts for the majority of sanctions-related transaction volume, is a prime example of this. OFAC imposed sanctions on Garantex in April 2022, but as a Russia-based company, the exchange has been able to continue operating with impunity.
Chainalysis also highlights that the volume of illegal cryptocurrency transactions linked to the sanctions increased by 10,012,224.34% from 2021 to 2022.
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According to the report, “Transactions associated with the Garantex exchange or any other sanctioned crypto service, at the very least, pose significant compliance risks primarily to businesses subject to US jurisdiction, including fines and potential criminal charges.”
The report also notes that transaction volume has declined across all other most popular categories of cryptocurrency-related crime, with the exception of stolen funds, which increased by 7% in 2022.
“Overall, illicit cryptocurrency activity remains a small share of the total volume at less than 1%. It is also worth keeping in mind that despite this year’s jump, crime as a share of all activity in the cryptocurrency ecosystem is not still on the decline.”
by CryptoFacil