Hackers Accounted For 24% Of Funds Moved Via Crypto Mixers
According to Chainalysis, the amount of crypto processed via crypto mixers fell in 2022 by $3.7 billion compared to 2021. The report indicates that 24% ($1.872 billion) of the $7.8 billion came from fraudulent sources.
In 2021, the figure recorded was only 10%. This increase shows that the number of legitimate users using crypto mixers has dropped. This could be due to the recent stiff regulations against crypto platforms.
However, the sanctions have not deterred fraudulent individuals from using crypto mixers. Interestingly, Chainalysis’ report noted that many fraudulent funds run through crypto mixers in 2022 were from hackers.
The report cited the North Korean group as many of those hackers. According to Chainalysis, regulatory sanctions did not dissuade North Korean hackers from using crypto mixers. Besides, they did not live in the US.
Also, the report revealed that addresses associated with illegal activities moved over $23.8 billion worth of crypto last year. This represents a significant increase of 68% compared to 2021.
In addition, the blockchain firm stated that centralized exchanges benefitted greatly from the illegal funds. They processed about 50% of illegal funds moved from fraudulent crypto wallets.
Off-Ramp Services Played A Huge Part
Meanwhile, Chainalysis found that off-ramp services played a massive role in crypto-related money laundering. This allowed criminals to convert their crypto into fiat easily.
Notably, on-chain data shows that few off-ramp services received the most money. From the report, 915 fiat off-ramp services received fraudulent funds.
However, five services received about 68% of these funds last year. According to on-chain data from Chainalysis, a few deposit addresses received illegal funds from fiat off-ramping services.
The data shows that most crypto-based money laundering is centered around a limited number of individuals or entities who engage in fraudulent activities. Furthermore, the report revealed that bad actors sent at least $100 million worth of illicit funds to four deposit crypto wallets.
The total amount received by the four wallets amounted to over $1.1 billion. The other 1.2 million deposit wallet addresses left got less than $100 million each.
The total amount received is about $38 million. Chainalysis noted that 542 deposit wallet addresses received over 50% of the illicit funds ($6.3 billion) from fiat ramping services last year.
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