Chainalysis Report: Cryptocurrency Crime Amounts Drop to $24 Billion by 2023

Chainalysis Report: Cryptocurrency Crime Amounts Drop to $24 Billion by 2023

Chainalysis Report: Cryptocurrency Crime Amounts Drop to $24 Billion by 2023

Blockchain analysis company Chainalysis estimates in its annual cryptocurrency crime trends report that by 2023, the value of cryptocurrency received by illegal cryptocurrency addresses will exceed $24 billion, accounting for 0.34% of all cryptocurrency transaction volume.

Source:
Chainalysis

The amount of cryptocurrency associated with illicit activities is about 40% less than in 2022, but this is only temporary. Over time, more addresses will be identified as illicit, and the total amount of $24.2 billion may increase. The current amount of cryptocurrency crime in 2022 is $39.6 billion, but in Chainalysis’ previous report, only $20.6 billion in value was confirmed.

A notable part of this research is the prevalence of sanctioned-related transactions. In 2023, the total volume of transactions related to sanctioned entities and jurisdictions amounts to $14.9 billion, accounting for 61.5% of the total illicit transaction volume, with most of it driven by cryptocurrency services sanctioned by the U.S. Office of Foreign Assets Control (OFAC) or located in sanctioned jurisdictions.

Among the $14.9 billion, there are also transactions from ordinary cryptocurrency users residing in sanctioned areas. After all, not all users of the Russian cryptocurrency exchange Garantex, sanctioned by U.S. and UK authorities, are involved in cryptocurrency money laundering and ransomware activities.

Stablecoins’ share in illicit transactions has increased.
Like the previous year, stablecoins accounted for the majority of illicit transaction volume in 2023. Before 2022, Bitcoin was the preferred cryptocurrency for criminals; however, this changed in 2022, with stablecoins accounting for about two-thirds of the total illicit transaction volume.

Source:
Chainalysis

On the other hand, Chainalysis’ research shows a significant decrease in the amount of money related to cryptocurrency scams and hacker attacks last year, with a decrease of 29.2% and 54.3% respectively, while the amount associated with ransomware and dark web activities has increased.

Data source