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Record $ 14bn entered the crypto wallets linked to crime in 2021

Terrorists have used large amounts of crypto currency for illegal reasons in 2021 but the overall growth of the digital financial markets outweighed the rise in fraud.

The volume of crypto shipments to addresses by well-known criminal organizations has plummeted to $ 14bn last year, double from 2020, according to data research company Chainalysis.

Scams, ransomware and theft rose 79 percent in dollar terms last year but the overall market expanded by 550 percent, with the $ 15.8tn price of cryptocurrencies sold in 2021. This means that the relative share of illegal activities has dropped a record low.

“Annual trends indicate that. . . crime is becoming a small and small part of the cryptocurrency ecosystem, ”Kim Grauer, chief of research at Chainalysis, wrote in the report.

“With the growth of cryptocurrency approved for use beyond the scope of criminal activity, the illegal share of cryptocurrency transaction volume has never dropped, by 0.15 percent,” Grauer added. In its previous survey, Chainalysis estimates that 0.34 percent of crypto currencies were created for illegal reasons.

Even so, cryptocurrency markets remain a threat to investors. Fraud involving cryptocurrencies cost a total of $ 7.8bn and approximately $ 3.2bn worth of cryptocurrency was stolen in 2021, an increase of 516 percent over the previous year.

In January, unauthorized addresses contained more than $ 10bn in cryptocurrency, Chainalysis was calculated.

Lawmakers and regulators have been successful in dealing with cases involving bitcoin and other cryptocurrencies but are playing new markets such as decentralized currencies, or DeFi, which allow criminals to steal and steal money.

Than $ 100bn of cash locked in DeFi markets, where algorithms run all transactions and there is no interaction between the parties. The five-fold growth of the site last year has given rise to rogue and fraudulent sites such as “rugpulls”, where fraudsters force investors to invest in a new brand before it expires.

The scam cost investors $ 2.8bn last year. Thefts have also increased, with another $ 2.2bn stolen from DeFi sites, an increase of 1,330 percent from 2020. One example was the $ 600m breach of the Polygon Network, which the thief called it. Mr White Chipewa then he returned.

Elliptic, a cryptocurrency data technology company, a few in November that investors lost $ 12bn of money in DeFi markets last year.

“As DeFi grows, so does the issue of money laundering…

Late October, Bank for International Settlements took the first step aims to bring DeFi markets under the control of regulators by outlining plans to enable site operators to comply with anti-money laundering laws.


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