Illicit crypto flows hit all-time high of $20.1 billion in 2022 – Yahoo Finance

Illicit crypto flows hit all-time high of $20.1 billion in 2022 – Yahoo Finance

Blockchain Crypto Market Technology
January 13, 2023 by Coinvasity
17
Retail and institutional interest in crypto may have dropped amid a plunge in the asset class last year, but the value of criminal activity in digital assets rose to a record high in 2022, according to a new report from blockchain analytics platform Chainalysis.Illicit crypto wallets received $20.1 billion in crypto assets last year, Chainalysis
wp-header-logo-211.png

Retail and institutional interest in crypto may have dropped amid a plunge in the asset class last year, but the value of criminal activity in digital assets rose to a record high in 2022, according to a new report from blockchain analytics platform Chainalysis.
Illicit crypto wallets received $20.1 billion in crypto assets last year, Chainalysis found, double the prior year's share as a portion of total crypto volume.
This amount still accounts for less than 1% of total crypto activity. Last year's surge is due mostly to the rise of sanctioned crypto addressed.
As a share of total crypto activity, criminal flows made up 0.24% of all crypto transactions in 2022, up from last year's revised reading of 0.12%, the lowest reading as a portion of crypto flows in last six years. Still, the total value of crypto received due to criminal activity has risen each year since 2020.
“In spite of it being an all time high for criminal activity, a lot of crimes are down. Scamming and ransomware are down, but hacks and sanctions are not,” Kim Grauer, Chainalysis’ head of research, told Yahoo Finance.
Despite the downturn in cryptocurrency prices — which led to shrinking illicit volumes for most crypto crime including scams and darknet market flow — transactions to and from sanctioned wallet addresses grew sharply, accounting for 44% of the year’s criminal activity.
While crypto addresses have been sanctioned in past years, the pace of sanction designations by the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) grew rapidly following the outbreak of the Russia-Ukraine war.
“This was the year OFAC leaned in and started using crypto sanctions as a tool to stop some of this activity,” said Grauer.
The majority of those illicit volumes came from Garantex, a little-known crypto exchange sanctioned by the U.S. Treasury Department in April of last year. This business, which operated out of Federation Tower in Moscow as of the day Treasury imposed penalties, accounted for the majority of sanctions-related crypto volumes.
Other notable sanctioned addresses included those belonging to North Korea's hacking team Lazarus Group, as well as the privacy software Tornado Cash. Since OFAC first started including crypto addresses in sanction designations in 2018, it has only sanctioned ten different crypto-related entities.
However, starting in 2021, OFAC began designating entire crypto services instead of individuals. The outcome has led to a tripling in the number of sanctioned crypto addresses over the past year.
"I think we as an industry need to think about what's the implication of all the sanctioning activity and what's going to happen next year," Grauer added.
By comparison, illicit transactions for all other crypto-related crime fell on a year-over-year basis with the exception of stolen funds from hacks, which increased 7% to over $3 billion.
Chainalysis did note two key stipulations to their illicit crypto transaction data which could lead to future revisions of the findings.
First, the company can't capture criminal proceeds from non-crypto crime, such as drug trafficking that can be laundered through crypto but not traced without further investigation, according to Grauer.
Second, the firm also chooses not to count current pending fraud cases.
This excludes the up to $7 billion that former FTX CEO Sam Bankman-Fried is alleged to have taken from FTX customers. Chainalysis' figures also don't count the $1.2 billion in missing funds from Celsius Network as of its July bankruptcy petition.
"It's not our place to call these [cases] definitive crimes or not," said Grauer, who added the company routinely releases studies related to such cases that showcase where crimes could have been committed.
Click here for the latest crypto news, updates, values, prices, and more related to Bitcoin, Ethereum, Dogecoin, DeFi and NFTs
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app for Apple or Android
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube
Baltimore prosecutors on Friday dismissed all charges against Keith Davis, Jr. in both criminal cases against him. Davis has stood trial four times in the death of a security guard.
Tiny Colony, a building and management game, is the latest NFT project to announce a shift away from Solana.
A giant, swirling storm system billowing across the South on Thursday killed at least six people in central Alabama, where a tornado ripped roofs off homes and uprooted trees in historic Selma, while another person was killed in Georgia, where severe winds knocked out power to tens of thousands of people. In Autauga County, Alabama, 41 miles (66 kilometers) northeast of Selma, at least six fatalities were confirmed and an estimated 40 homes were damaged or destroyed by a tornado that cut a 20-mile (32-kilometer) path across two rural communities, said Ernie Baggett, the county’s emergency management director. Several mobile homes were launched into the air and at least 12 people were injured severely enough to be taken to hospitals by emergency responders, Baggett told The Associated Press.
After the U.S. Supreme Court overturned Roe v. Wade, the 1973 landmark case that protected abortion rights, medical professionals say they have seen a drastic increase in vasectomies.
Generators that were unable to deliver increased electricity during three peak demand days in late December could face about $2 billion in penalties, stakeholders and analysts said. Grid operator PJM Interconnection oversees supply in a 13-state region, managing and paying on-call generators to keep power systems running. When generators fail to meet supply, they may be required to pay the grid operator for replacement power.
Crypto.com on Friday became the latest player in the crypto industry to announce layoffs this year as "Crypto Winter" takes its toll.
Love her or loathe her, Barbie has been transformed again, this time into a version for children as young as 3. Gone is the contentious hourglass figure for My First Barbie, which launched Thursday ahead of July's live-action film about the icon starring Margot Robbie and Ryan Gosling. My First Barbie is 13.5 inches tall, 2 inches taller than traditional Babs, with a larger waist that de-emphasizes the bust line (it remains in place, however), and flesh-tone modesty undergarments permanently attached.
TV Hill showed off its purple pride on Wednesday. The Baltimore Ravens came to WBAL-TV and stenciled parts of the hill, the parking lot and some employees' cars. It's all to spread purple pride and team spirit ahead of Sunday's Wild Card came against the Cincinnati Bengals.
Even though cold weather is in the forecast, many are preparing for the warmer months, with shows dedicated to boating and fishing this weekend.
DeFi Summer has cooled into Crypto Winter, but with a silver lining: Investors are finally asking sensible questions like: ‘Where does the yield come from?' writes Julian Koh of Ribbon Finance.
Pulte Capital CEO Bill Pulte and Thor Equities CEO Joe Sitt explain why U.S. real estate is headed towards "big trouble" in 2023 and could put "a lot of things to a stop."
Home improvement retailer Home Depot is making a nationwide change to how it pays hourly employees next week. The move was first reported by Business Insider.
Electric vehicle (EV) stocks are soaring this week. EV maker Lucid Group (NASDAQ: LCID) was up by 30%, charging network company ChargePoint Holdings (NYSE: CHPT) was 24.1% above last Friday's closing price, and solid-state battery maker QuantumScape (NYSE: QS) was rising by 32.1% for the week, according to data provided by S&P Global Market Intelligence. Many growth stocks were rising this week as investors anticipated — and received — tamer inflation data that spurred hopes that the Federal Reserve would slow, or pause, interest rate hikes.
Recently, Zacks.com users have been paying close attention to AMC Entertainment (AMC). This makes it worthwhile to examine what the stock has in store.
Shares of National Instruments (NASDAQ: NATI) are soaring 17.1% at 10:29 a.m. ET after the instrumentation hardware and software products company announced it was undertaking a strategic review of its business, including the possible sale of the company. National Instruments says it has been approached by several parties interested in buying the business. National Instruments' stock has been trading in a fairly narrow range over the past five months as uncertainty about the global economy has kept a check on what otherwise seemed a solid, growing business.
YouTube Host Matt Kohrs joins Yahoo Finance Live to discuss meme stocks, volatility, trading opportunities for investors, Bed Bath & Beyond, and the outlook for retail traders in 2023.
General Electric (NYSE: GE) has completed the first part of its breakup, and GE shareholders are now owners of GE HealthCare Technologies (NASDAQ: GEHC). But what should you make of the change, and are the shares worth selling, adding to, or initiating a new position in? Here's the lowdown.
Citigroup Analyst Stephen Trent joins Yahoo Finance Live to discuss fourth-quarter earnings for Delta Air Lines, travel demand, the expectations for labor among the airline industry, and the outlook for Delta Air Lines for 2023 and 2024.
Lockheed Martin (LMT) closed at $461.74 in the latest trading session, marking a -0.27% move from the prior day.
In 2020, it seemed Cathie Wood could do no wrong. One stock that Wood is particularly bullish on is Roku (NASDAQ: ROKU). Wood's bull case on Roku is even more optimistic, with a price target of $1,493, or potential gains of 3,100%.

source

Add a comment