(VitalNews.org) – Money launderers have started using cryptocurrency to conceal the flow of their illegal funds, according to a report that was conducted by Chainalysis. The report was used to look at new ways that people are money laundering.
It found that crypto was being used for crimes like drug trafficking and fraud as the crypto “cross-border” is instant and inexpensive to transact.
“The growing ubiquity of crypto has made it a tool for laundering proceeds from various off-chain crimes, such as narcotics trafficking and fraud. This year, money laundering in crypto encompasses all crime — not just that which is inherently tied to the crypto ecosystem,” Chainalysis said.
Money launderers have been using different methods like cross-chain bridges, crypto mixers, and “hops” between wallets. Crypto mixers include mixing crypto from different sources to make it difficult to track the owner or its origins.
“Hops” are said to be the process of moving funds around between intermediary personal wallets to avoid detection. Almost one hundred billion dollars of crypto was transferred between illicit wallets over the last five years, with the most in one transaction being thirty billion dollars.
Although crypto laundering is expected to become more popular, it is still traceable. Because of the transparency of the blockchain, Chainalysis said that crypto laundering can be analyzed and traced.
Says the firm, “As the global acceptance of cryptocurrencies grows and barriers to entry diminish, Chainalysis expects this type of money laundering to become more significant, as illicit actors historically co-opt new technologies for their own purposes.”
Copyright 2024, VitalNews.org
