Stablecoins Surpass Bitcoin in Illicit Transactions; Crypto Crimes See Dip
Summary:
In recent years, stablecoins have outpaced Bitcoin in illegal transactions, according to a report by blockchain analysts Chainalysis. This shift corresponds to an overall increase in stablecoin activity. Despite this, Bitcoin remains the choice for darknet and ransomware actions. Most notably, 61.5% of all illicit transactions involved entities sanctioned by the U.S. Treasury's Office of Foreign Assets Control. A dip in crypto hack revenue and scam profits has also been observed, indicating a drop in overall illicit transaction volume.
In the past two years, stablecoins have surpassed Bitcoin (BTC) in terms of illicit transaction volume. This is a shift from 2018 to 2021, when Bitcoin was the go-to digital asset for criminal activity, according to Chainalysis, a blockchain analytics company. The firm traced this shift back to an increase in overall activities involving stablecoins, both lawful and unlawful. While Bitcoin still reigns supreme in certain types of illegal activities such as darknet markets and ransomware, stablecoins have become the preferred crypto for scams and transactions associated with proscribed entities. These currently represent the largest segments of crypto crime by volume.
In their report, Chainalysis stated that in 2023, a staggering $14.9 billion of transaction volume was attributable to sanctioned entities and jurisdictions, making up 61.5% of the total illicit transaction volume for the year. The firm pointed out that the majority of these transactions involve crypto services sanctioned by the U.S. Treasury's Office of Foreign Assets Control but operating in regions unaffected by U.S. sanctions.
In related news, on January 4, blockchain security company CertiK reported a more than 51% decrease in crypto hack revenue in 2023, calling this a positive trend in blockchain security. Ronghui Gu, co-founder of CertiK, stated in agreement with the facts laid out by Chainalysis of a drop in crypto hack revenue by 54.3% and crypto scam profits by 29.2%. These declining numbers indicate a corresponding decrease in the transaction volume connected to illicit addresses in 2023.
Published At
1/18/2024 5:00:00 PM
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