Since crypto has become more mainstream, there has been one issue of ill or another in the sector. This shows that some traders’ concerns about entering the market are valid. Despite a widespread clampdown on these malicious actors, they always find a new way to reinvent themselves. This is highlighted in the latest Chainalysis report, which details an uptick in money laundering across the crypto sector.
The data analysis body saw a sharp increase in money laundering in the last two years.
According to the Chainalysis report, these malicious actors could contribute about $8.6 billion to the amount of illicit cash laundered through the crypto sector. Although the data analysis body saw a sharp increase compared to two years ago, the figure still has a wide gap compared to 2019. In its 2019 report, Chainalysis said that about $10.9 million in crypto were laundered in the sector. However, the record-keeping company also announced that the figures have hit above $30 billion over a five-year duration.
Criminals derived more value in laundering through digital assets than physical cash.
The Chainalysis report also discussed the vast differences between physical cash trading and online transactions. The report mentioned that blockchain is transparent and has been able to help officials track these assets. With that, they can view which wallets house what illicit gotten digital asset and gets a notification when it gets moved into another wallet. Chainalysis also mentioned that the criminals derived more value in laundering through cryptocurrencies than physical cash. The Chainalysis report also highlights the drop in money laundering through centralized exchanges, representing just 47% of the entire figure.