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Cryptocurrency: Less than 0.5% is used for illicit activity

Cryptocurrency Chain

According to Chainalysis, Cryptocurrency related crime has fallen significantly in 2020. This contradicts Janet Yellen’s claims that cryptocurrency is a source for illicit financing.

According to the data from Chainalysis, in 2019, criminal activity was just 2.1% of all cryptocurrency transaction volume which was roughly $21.4 billion worth of transfers. However in 2020, the criminal share of all Crypto activity fell to a measly 0.34% or just $10.0 billion in transaction volume.

Chainalysis Cryptocurrency

The report said that one of the reason the percentage of criminal activity fell in the year 2020 is that the overall crypto-related economic activity tripled between the year 2019 and the year 2020. However, Chainalysis notes that there could still be unreported, and unknown ransomware attacks still unaccounted for.

In the last year’s report, Chainalysis initially reported that 2019’s criminal share of crypto market was around 1.1%. However, as time passed the numbers got changed as more activities were reported and addresses associated with criminal activities in 2019 were identified in 2020. However a big part of this was the PlusToken Ponzi Scheme which took in over $2 billion from victims.

Whatever happens, crypto related crime is a tiny part (less than 1%) of the overall cryptocurrency market. In comparison, a higher percentage of fiat money accounts for criminal activity, with 5% of global GDP ($2 trillion) being laundered.

Volume of Cryptocurrency transactions according to crime

Chainalysis Cryptocurrency Crime
  • Scams took in $2.6 billion
  • Darkweb Markets $1.7 billion
  • Ransomware attacks took in $350 million



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