Crypto money laundering rises 30% in 2021: Chainalysis

• Recently a report from blockchain analysis firm Chainalysis was released.
• According to report Cyber criminals laundered $8.6 billion in cryptocurrencies last year, up 30% from 2020

What is cryptocurrency?

• Cryptocurrency is a type of digital currency in which transactions are validated and records are kept by a decentralised system rather than a centralised authority utilising encryption.
• Since it is not issued by a central authority, it is theoretically immune to government intervention or manipulation.
• According to Chainalysis, a blockchain analytics firm, criminals laundered $2.8 billion in Bitcoin to exchanges in 2019.

According to a report from blockchain analysis firm Chainalysis

• fraudsters have laundered more than $33 billion in cryptocurrency since 2017, with the majority of the total shifting to centralised exchanges over time.
• Cybercriminals laundered $8.6 billion in cryptocurrencies last year, up 30% from 2020.
• Since 2017, cybercriminals have laundered more than $33 billion in cryptocurrency, with the majority of the amount flowing to centralised exchanges over time.
• Money laundering refers to The process of concealing the source of unlawfully obtained funds by remitting them to legitimate businesses.
• Almost 17% of the $8.6 billion laundered went to decentralised finance applications, which permit crypto-denominated financial transactions outside of traditional institutions.This was an increase from 2% in 2020.
• According to the Chainalysis research, wallet addresses linked to theft transmitted just under half of their stolen cash to decentralised finance platforms, totaling more than $750 million in bitcoin.
• The $8.6 billion laundered last year, according to Chainalysis, reflects cash earned from crypto-native crime, such as darknet market sales or ransomware operations, in which earnings are made in crypto rather than fiat currencies.