According to chain analysis Almost a million bitcoins (BTC) are in the hands of bad actors in space, and more than half are in the hands of the dark web markets.
Bitcoin held by illegal entities. Source: chain analysis.
Illegal markets currently have 585,000 BTC, fraud has 99,000 BTC, stolen funds add another 205,000 BTC, and everyone else has an additional 3,000 BTCa total of 892,000 BTC. According to Chainalysis, only 0.32% of all current Bitcoin flows are contaminated by illegal activities.
Washing illegal bitcoins. Source: chain analysis.
The exchange plays a fundamental role
Regardless of the origin, cryptocurrency exchanges are the main illegal Bitcoin targets. This is in line with the observed behavior of the latest Twitter hackers, who were in a hurry to transfer their newly acquired assets to exchanges.
About 300,000 Bitcoin are in the hands of fraudsters and thieves. In the past few years, Cryptocurrency exchanges have started to take their procedures more seriously. Know your customer and fight money laundering. These guidelines make it more difficult for criminals to download their illegally acquired loot, which is also a good sign for the market as the massive sales of criminals could lead to a drop in prices.