Recently, it was reported that 270 addresses laundered 55% of the cryptocurrency associated with criminal activity. Most of these addresses are legitimate businesses with AML/CTF failures. In total, these 270 addresses received anywhere from $0 to $100 worth of illicit cryptocurrency. But what’s so shocking about this? It turns out that most of these 270 addresses are in fact legitimate businesses with major AML/CTF failures.
270 addresses laundered 55% of cryptocurrency associated with criminal activity
A Chainalysis study has identified 270 service deposit addresses as the main conduit for the money laundering of cryptocurrency. Together, these 270 addresses launder nearly $1.3 billion in digital assets. While some of these addresses are directly controlled by criminals, many more are nested within larger exchanges. Because of this, the criminals can use these addresses to launder money across many different exchanges.
A recent report by Chainanalysis examined the cryptocurrency money laundering schemes that have fueled the black market. It found that only 270 addresses launder nearly half of the cryptocurrency associated with criminal activity. The majority of illicit digital coins were transferred to these 270 addresses, many of them connected to over-the-counter brokers. The report also found that criminals are increasingly using these accounts to transfer money from one domain to another.
The report shows that 270 service deposit addresses launder more than $55 million worth of cryptocurrency associated with criminal activities each year. Although many of these addresses are legitimate, a significant proportion of these funds end up in illicit accounts. These accounts are often hosted on exchanges and are designed to handle large amounts of funds. The 20 biggest money laundering deposit addresses are responsible for almost half of all Bitcoin and stablecoin deposits, and a staggering 67% of Ethereum and other altcoins.
270 addresses received between $0 and $100 worth of illicit cryptocurrency
In 2018, the amount of illegal cryptocurrency money laundered by 270 bitcoin addresses totaled $1.3 billion. This figure is still a small fraction compared to the entire market, but it does illustrate the importance of ensuring the integrity of the cryptocurrency industry. A recent report from Chainalysis found that around 55% of all illicit cryptocurrency was laundered through a small group of 270 addresses. This amount represents a significant amount of money, and despite the small number of cases reported, this is still a staggering number.
The data suggests that the majority of these addresses were Chinese, but this does not mean that other Chinese users are not engaged in similar activity. Despite this, it is important to note that the United States is slightly overrepresented among the nations receiving funds from illicit addresses. These countries may be using cryptocurrency as a means of circumventing the law and making money. Whether or not these countries are involved is another matter.
The FBI also recently announced the dismantling of three terrorist financing cyber-enabled campaigns, which included al-Qaeda and the ISIS. The terrorists used sophisticated cyber-tools to raise funds and allegedly solicited cryptocurrency donations. The government seized four Facebook pages and hundreds of cryptocurrency accounts linked to the alleged terrorists. The seizure netted millions of dollars.