HomeCryptoChainalysis Reports that Traditional Money Launderers are Now Utilizing Cryptocurrency

Chainalysis Reports that Traditional Money Launderers are Now Utilizing Cryptocurrency

-


Traditional Money Launderers Utilizing Crypto Networks for On-Chain Money Transfers, Says Chainalysis

The world of crypto money-laundering is evolving, with traditional money launderers now utilizing crypto networks to clean cash that originated outside of the digital currency realm. According to a new report from analytics company Chainalysis, these criminals are creating “large-scale money laundering infrastructure” on-chain, raising concerns among experts.

While Chainalysis is known for flagging illicit transactions such as scams, thefts, and ransomware attacks on the blockchain, this new trend involves transfers from wallets that aren’t known to be illicit. These transactions exhibit characteristics that would typically raise red flags in traditional financial compliance departments, such as splitting funds into smaller tranches just below reporting thresholds and recombining them later.

Chainalysis’ Head of Research, Kim Grauer, emphasized that while transactions just below certain thresholds may not definitively be illicit, they warrant further investigation. The report found a significant number of transactions valued just below the $10,000 mark, where additional know-your-customer rules apply, indicating a potential trend in the space.

One concerning aspect highlighted in the report is the flow of funds to over-the-counter brokers who openly advertise their willingness to convert criminal crypto into dollars without asking questions. Grauer stressed the importance of advancing compliance techniques in the crypto industry to align with those developed in traditional banking.

As the world of crypto money-laundering continues to evolve, experts are calling for increased vigilance and collaboration between industry players to combat illicit activities on-chain.

LATEST POSTS

Ant Digital, Alibaba’s Fintech Arm, Increases Funding for Blockchain Expansion

Ant Group's Blockchain Expansion: Capital Injection and Strategic Moves in China Ant Group, the fintech arm of Alibaba, is making significant moves in the blockchain...

Binance Launches ‘Word of the Day’ Game: Earn Binance Points and Prizes

Binance Introduces 'Word of the Day' Game: Win Binance Points and More Binance Introduces 'Word of the Day' Game: Win Binance Points and More Binance, a...

Sony Group makes strategic move into cryptocurrency market with acquisition of Amber Japan

Sony Group Enters Crypto Exchange Market with Acquisition of Amber Japan Sony Group Makes Bold Move into Crypto Exchange Market with Acquisition of Amber Japan In...

Solana Surpasses Ethereum in Important Metric

Top Solana-based DEXes Lead in Daily Trading Volume, Surpassing Ethereum Solana-based decentralized exchanges (DEXes) are making waves in the cryptocurrency market, with five of them...

Most Popular