Cryptocurrency crime is likely to come from a shrinking proportion of the broader sector over the next year as law enforcement agencies make greater use of the transparency that blockchain technology offers.says Kim Grauer, Head of Research at Chainalysis
According to a January 6th report by Chainalysis, The growth in legitimate use of cryptocurrencies far outstrips the growth in criminal use. The proportion of the volume of transactions in cryptocurrency associated with illegal activities has never been so lowwhich is only 0.15% of the transaction volume in 2021.
She told Cointelegraph that “Atypical criminal events” aside, he expected the growth in legitimate cryptocurrency usage versus illegal usage to accelerate further through 2022..
Said Things look hopeful in the room as “the illegal portion of the transaction volume continues to decline” and “the narrative that cryptocurrencies are primarily a means for criminals to do business is finally being put to bed.”
Law enforcement agencies continue to demonstrate to bad actors that the transparency of cryptocurrencies makes them an undesirable means of transferring illicit funds. Cash is still king when it comes to illicit funding, and that likely won’t change.
In 2021, carpet drawing became the scam of choice for crypto criminals. Fraud Revenue Up 82% to rise to $ 7.8 billion in 2021, of which more than $ 2.8 billion from rug pulls alone.
But still, Grauer said that doesn’t necessarily suggest carpet-drawing will remain the most widespread scam through 2022.. Rather, criminals are likely to abuse “newer technologies” such as DeFi, NFTs and DAOs when the space moves to the web3.
â ???? We saw that [en 2021] especially at DeFi, where criminals not only chased DeFi platforms for attacks such as hacks or carpet pulling, but increasingly began to use DeFi platforms for money laundering.
Likewise, Grauer suggested that while he didn’t expect a potential bear market for cryptocurrencies to affect the rate or type of cryptocurrency, a major financial recession or depression might.
“If you look at the economic markets in general – not just cryptocurrencies – Recessions and depression can lead to an increase in criminal activity, “he said..
In 2021, law enforcement agencies around the world had many notable achievements. In November 2021, the IRS Criminal Investigations announced that it had seized more than $ 3.5 billion worth of cryptocurrencies as part of a non-tax investigation in 2021.
Although the proportion was lower, Cryptocurrency-based crime actually hit a new all-time high in 2021, with illegal addresses receiving $ 14 billion over the course of the year, compared to $ 7.8 billion in 2020, according to Chainalysis.