Crypto Money Laundering Rises 30% In 2021
A recent report revealed that crypto money laundering increases by 30% in 2021 compared to the previous year. Data company Chainalysis conducted that research and found that criminals have laundered near about $8.6bn in 2021.
Previously the data company found that criminals received $14bn cryptocurrencies last year. Chainalysis mentioned that they have tracks cryptocurrency wallets controlled by criminals like ransomware attackers, human traffickers, and other terrorist groups. They also have tried to record the transactions of malware operators, scammers, and darknet market operators.
Chainalysis report stated, “while billions of dollars worth of cryptocurrency move from illicit addresses every year, most of it ends up at a surprisingly small group of services, many of which appear purpose-built for money laundering”.
It also said, “Law enforcement can strike a huge blow against cryptocurrency-based crime and significantly hamper criminals’ ability to access their digital assets by disrupting these services.”
Head of a financial investigation at the National Crime Agency Gary Cathcart said: “Whilst the vast amount of cryptocurrency use and exchange is for legitimate reasons, organized criminals have identified the benefits that cryptocurrency provides them.”
Gary also said, “There are parts of the cryptocurrency structure that are being exploited to launder criminal cash, particularly from drug dealing. The growing menace of ransomware also utilizes cryptocurrencies as its payment mechanism.” Then Gary added, “Law enforcement is responding to this adoption by criminal gangs and cryptocurrency seizures are increasing. Legislative changes are also being progressed to assist with the response to cryptocurrencies being used in illicit finance practices.”