Chainalysis’ 2019 Crime Report, distributed Wednesday, subtleties its examination of illegal exercises a year ago, standing out 2019 activities from earlier years. It found that while the measure of bitcoin sent from criminal elements multiplied among 2018 and the finish of 2019, it despite everything represents simply 0.08 percent of the all out number of bitcoin exchanges a year ago.
And keeping in mind that trade hacks and burglaries commanded features a year ago, “tricks were by a long shot the most elevated acquiring class of crypto wrongdoing in 2019,” the report said. “Digital currency tricks speak to a critical peril to customer insurance, and the development of this movement in 2019 calls for expanded activity from controllers, law authorization and trades the same.”
According to the report, scammers received roughly $4.3 billion in crypto, out of about $6 billion received from illicit activity last year. Overall, scams accounted for $8.6 billion in crypto transactions, while criminal activity (including hacks and thefts) totaled just under $12.5 billion..
Other categories included terrorism financing, ransomware, darknet markets, outright theft, sanctions and child abuse. Moreover, the total amount of crypto used in scams is disproportionately weighed down by “just three separate large-scale Ponzi schemes”; without them, the numbers drop dramatically (for example, the PlusToken Ponzi appears to have accounted for between $2 and $3 million alone).
Chainalysis mentions at multiple points that a solution, or at least the beginnings of one, to the issue of illicit activity can come from more informed regulation, better enforcement of regulation and action by crypto exchanges to tackle illicit activities.
“We believe the consumer protection implications make cryptocurrency scams an issue regulators must address and law enforcement must have the resources to investigate,” the report said. “Exchanges are also in a unique position to help, both in terms of protecting users from being scammed and preventing successful scammers from depositing funds or cashing out.”
Regulators and law enforcement agents must become more familiar with analyzing blockchains as part of this effort, the report said.
The company also highlights its own services, noting that while money laundering in the fiat world might require court-issued subpoenas to tackle, “blockchain analysis tools like Chainalysis” can help investigators analyze transactions recorded on public ledgers.