The authenticity and credibility of cryptocurrency have been a matter of concern for most people since it was launched, and it’s the biggest hurdle in the way of digital asset’s success.
A shocking report has been released by a blockchain analysis firm named Chainalysis that during the last year (2021), a whopping $8.6billion have been laundered by cybercriminals. If it is compared with 2020, then this number is thirty percent more.
So, if you have no idea what money laundering means, then it is worth mentioning that it is the process of converting money through drug trafficking, criminal actions, etc. You make it look like something that you have obtained from authentic and legitimate business sources and activities.
The title of this report is the 2022 Crypto Crime Report. It further revealed that since a worth of more than $33 billion, crypto had been laundered, and the majority of the capital gain through laundering has been transferred to cryptocurrency exchanges. In addition, the study also unveils that ransomware attacks and sales on dark web profits are always gained by cryptocurrency instead of fiat currency.
According to Chainalysis, seventeen percent of the total laundered money is received by the decentralized application. DeFi is a substitutional finance ecosystem or marketplace where users can borrow, trade, or lend cryptocurrency. It is independent of the conventional financial institutions and regulatory bodies that have been developed according to the banking system.
The report further showed that wallet addresses linked with theft only sent half of the funds they have stolen or worth $750 million or more crypto to DeFi.
Moreover, Chainalysis also told that scammers theft more than $14 million from sufferers in 2021. During 2020 the percentage was $7.8, so a considerable increase of 79 percent is quite alarming. When kit comes to 2022, Chainalysis revealed that cryptocurrency of $10 billion had been holdover by illicit addresses. It should be noted most of this is held by wallets that are linked with the theft of crypto.
In a separate report in December 2021, Chainalysis claimed that thirty-six percent of the victims had been deprived of the worth of $2.8 billion owing to rug pull cases. Rug Poll is defined as a malicious scheme in the cryptocurrency industry in which the crypto developers call off a project and flee with investors’ funds. When it comes to crypto scams and frauds, rug poll is one of the leading reasons.
Such reports are becoming the source of making people more fearful and alleviating their trust in the digital currency. Furthermore, it highlights the primary issue that crypto faces, none other than irregularities. So, making more strict rules is the need of the hour. In addition to this, this report also shows that the scams and frauds are enhancing drastically and rapidly. Hence it is paramount that all the regulatory bodies develop more effective strategies.
What are your thoughts regarding this crypto report? Feel free to share in the comments section.