- In 2022 illicit addresses recieved $20 billion worth of cryptocurrency assets, according to crypto intelligence tracker Chainalysis.
- $8.8 billion of 2022’s illicit transaction volume came from activity associated with sanctioned entities.
- Share of all cryptocurrency activity associated with illicit transactions nearly doubled year-on-year.
The cryptocurrency market was rife with criminal activity, hacks, exploits, firms defrauding investors, and commingling funds with related entities, in 2022. So says a report published by crypto intelligence tracker Chainalysis, who traced on-chain activity of illicit funds and entities, and noted a sharp year-on-year increase in the share of criminal activity in the ecosystem.
Also read: Will US CPI release whipsaw Bitcoin price to $16,500?
Crypto crimes at their worst in 2022, total value of assets received by criminal entities crosses $20 billion
Cryptocurrency traders have lost their funds to firms’ bankruptcy, insolvency, and illicit usage of funds in 2022. The total value of Bitcoin, Ethereum and other crypto assets that hit wallets associated with criminal activity has crossed $20 billion. The number has climbed 11.11% since 2021 as seen in the chart below.
Cryptocurrency value received by illicit addresses
The numbers in the chart above do not include non-crypto native crimes like money-laundering and drug trafficking that involve the use of crypto and are not directly related to the ecosystem.
Shockingly, 44% of 2022’s illicit transaction volume came from activity associated with sanctioned entities. This comes as 2022 marks a year when the Office of Foreign Assets Control (OFAC) launched some of the most difficult-to-enforce sanctions.
OFAC is a financial intelligence and enforcement agency of the U.S. Treasury Department. The agency sanctioned three notable firms: Hydra, Tornado Cash and Garantex: all three are associated with the darknet market. The agency sanctioned nearly 350 addresses and 10 crypto-related entities.
Despite OFAC sanctions, Russia-based exchange Garantex continued its operations. Transactions associated with Garantex or any other sanctioned crypto service represent, at the very least, substantial compliance-risk for businesses that are subject to US jurisdiction, including fines and potential criminal charges.
Overall, the share of crypto activity associated with illicit addresses has doubled from 0.12% in 2021 to 0.24% in 2022.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC declines as resistance emerges near all-time high
Bitcoin and Ethereum are approaching their key support levels, and a sustained close below these marks could lead to further declines.
TON set to launch synthetic Bitcoin to boost its DeFi solutions
TON revealed its plan on Thursday to launch a synthetic Bitcoin token on its blockchain, allowing users to trade, stake, and earn yield using BTC. Following the announcement, TON is down over 3%.
Maker Price Forecast: MKR could stage 40% rally
MakerDAO is up 2% on Thursday and could be set for a 40% rise in the coming weeks if it successfully maintains an extended move above the descending trendline of a falling wedge. On-chain data also supports the bullish outlook after a four-month-long decline.
USDT market cap crosses $120 billion as stablecoins continue their uptrend
The stablecoin market cap continued its uptrend in October, characterized by USDT reaching a $120 billion market cap, according to a CCData report on Thursday. This indicates that investors are preparing liquidity to fuel more demand.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.