Chainalysis Report Summary: Crypto Money Laundering
The recent Chainalysis report is raising awareness to the ongoing issues of money laundering in the digital space and we believe it is important to talk further about what is occurring. It is important to study the flow of crypto from the primary tools used for illicit activity in relation to the total amount of crypto moving to and from known illicit wallets. This can provide a deeper perspective on the trends, instead of focusing on the funds transferred solely from known illicit wallets. It is important to note that the rapidly increasing volume of cryptocurrencies that are being moved through bridges and mixers are not guaranteed to be illicit, these activities do raise suspicion when uptrends occur, pointing to a possible connection with unknown illicit wallets.
Chainalysis’ report has modeled the amount of crypto transferred from known illicit wallets at an estimated $6.8 billion USD YTD, at the time of the report. Of this $6.8 billion, central exchanges were the primary location of crypto from illicit wallets averaging roughly $1 billion moved, per month, for the first four months of the year.
Furthermore, the total amount of value moved from known crypto obfuscation services has increased dramatically this year. These services include privacy coins, bridges, and mixers. In the month of March alone, nearly 3 thousand Monero transactions occurred, while roughly $14 billion of total volume moved through crypto bridges, dwarfing the transaction volume of the previous months. Additionally, for the first four months of this year, roughly $2 billion total volume was received by mixers.
While the total volume passing through these services does not equate to 100% illicit activity, it is important to pay attention to the transfer of value and the context of the situation and that a surge of crypto transactions are occurring, perhaps preparing for the oncoming wave of regulation on the horizon.
To read more of the Chainalysis report go to: https://go.chainalysis.com/rs/503-FAP-074/images/Report_%20Money_laundering_and_Cryptocurrency.pdf?version=0&fbclid=IwZXh0bgNhZW0CMTEAAR0vMVFQCbqp0izc4Kal9u9BCR_J7oZarliYbhN4aY5Uk6wZgT5E8wac0DA_aem_hHsnjIlwYDnlNapoC1Z1qw
At ValidEntry, we diligently study the ongoing criminal activity, regulations, and breakthrough security surrounding cryptocurrency to provide your business with valuable information to help protect your investments. ValidEntry Verifications provide individual users control over their PII and enable quick and safe access to Web3.0 environments. At the same time, ValidEntry enables project teams the ability to easily meet new and changing regulation and compliance requirements to ensure that funds going through their platform are not tied to illicit activities. We welcome the opportunity to show individuals and projects how seamless it can be to implement our solution.
