#chainalysisreport

Blockchain technology has surely transformed the banking sector by providing unprecedented speed, transparency, and security. However, the same characteristics have made it appealing to bad actors. In fact, in 2021, Bitcoin accounted for 70% of illicit transactions, but stablecoins currently dominate, with an increasing proportion of criminals choosing these assets for their perceived stability and ease of entry into established financial systems. Also Read:  pi-network-adoption-surges-as-crypto-eyes-new-heights/ In reaction to the growth in illegal cryptocurrency transactions, regulatory organisations are hurrying to enact new measures to fight the rising problem. Although institutional adoption has helped to reduce the proportion of illicit transactions compared to legitimate activity, the sheer amount of criminal transactions continues to concern regulators, lawmakers, and blockchain companies. According to the Chainalysis analysis, the overall estimated value of cryptocurrency illegal transactions in 2024 may exceed $51.3 billion as more data is collected. This estimate implies that criminals are growing more competent at utilising the cryptocurrency industry for illegal purposes, and the general landscape for illicit transactions is evolving. This tendency represents a huge challenge to the cryptocurrency sector. As decentralised finance (DeFi) expands and more people enter the digital asset arena, there will surely be a continuous battle to keep the financial system secure and transparent. The growth in crypto illicit activities serves as a sharp reminder of the risks involved with digital currencies, and why both individuals and institutions must remain careful in protecting their assets. In conclusion, the $40 billion milestone in crypto illicit transactions serves as a wake-up call for the sector. While blockchain technology offers enormous promise for growth and innovation, it also draws unscrupulous actors, who are increasingly seeking ways to use its characteristics for criminal purposes. As we move forward, it is evident that measures to combat crypto crime will need to be stepped up in order to maintain the crypto space's validity and assure its ongoing expansion. Read the full article

In 2023, cryptocurrency investors worldwide earned more than $37 billion, with Chinese users ranking among the top five in profit despite Beijing's strict stance on digital asset-related activities. According to a new Chainalysis report, mainland Chinese crypto investors earned $1.15 billion, securing the fourth spot after the United States, the United Kingdom, and Vietnam. Hong Kong traders, on the other hand, made a profit of $250 million. Chainalysis noted that compared to its previous 2021 report, mainland China has climbed one spot in the rankings. This indicates that the cryptocurrency enthusiast community in the country continues to thrive despite government restrictions. The analysts' assessment is based on data from centralized cryptocurrency exchanges (CEX) where crypto can be converted into fiat and does not account for decentralized trading platforms (DEX). Although the profit figures for investors in 2023 cannot yet match those seen at the peak of the previous cycle, the reported numbers still represent a significant increase compared to the disruptive year of 2022, during which market participants worldwide incurred aggregate losses totaling $127.1 billion. Read the full article

1. Decline in Illicit Cryptocurrency Transactions In 2023, there was a significant drop in the total amount of cryptocurrencies received from illicit addresses, plummeting to $24.2 billion from the previous year's $39.6 billion. Illegitimate transactions constituted a mere 0.34% of the total transfers. Analysts emphasized that "the majority of cryptocurrency activity is concentrated in stablecoins," with stable coins rarely being utilized by extortionists and on the darknet. 2. Impact of Sanctions and Fraud Volumes associated with sanctions and fraud emerged as critical benchmarks for analysts. Instances of fraud markedly reduced, leading to a decrease in ill-gotten gains. Intricate network metrics reveal a gradual decline in the activities of these individuals since 2021. 3. Reduction in DeFi Protocol Hacks Researchers also noted a substantial reduction in incidents of DeFi protocol hacks. This could signify developers enhancing security measures. However, markets for ransomware and the darknet remained the most prevalent forms of crypto crime, witnessing an increase in perpetrators' revenues. 4. Sanction-Related Transactions In 2023, entities and jurisdictions under sanctions were involved in $14.9 billion worth of transactions, constituting 61.5% of the total volume of illegal transfers for the year. A significant portion of this sum can be attributed to services subject to restrictions imposed by the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC). Conclusion: While cryptocurrency crime shows signs of decline in certain areas, challenges persist in sanction-related transactions and illicit activities on the darknet. The industry continues to evolve, prompting ongoing efforts to enhance security measures and regulatory frameworks. Read the full article