New data from Chainalysis shows that criminals’ crypto balances totaled roughly $11 billion in 2021. The post was a preview of its crypto crime report for 2022.
Blockchain security and data analytics company Chainalysis released a new report on the crypto market on February 16. The post was a preview of its 2022 Crypto Crime Report and highlights several notable trends and statistics. Among them is the fact that criminals held around $11 billion worth of illicit cryptocurrencies in 2021.
The post starts with Chainalysis noting some positive trends, such as the growing ability of law enforcement agencies to seize crypto from criminals. It cites several notable incidents, such as the U.S. Department of Justice seizing $2.3 million worth of crypto from the Colonial Pipeline attack.
He then explains that these developments can deter criminals from using stolen digital assets. Much of the discussion revolves around the amount of crypto held by criminals and whether it can be seized by law enforcement.
Stolen funds form the bulk of criminal crypto balances, followed by the darknet market. 2021 had a substantially larger year-end criminal balance at $11 billion, compared to roughly $3 billion in 2021.
Many criminals tend to keep their crypto funds without liquidating them for a long time. However, those who steal funds and execute ransomware attacks tend to liquidate the fastest. Darknet sellers and scam shops tend to hold out the most. However, average detention times in 2021 are 75% shorter than all-time figures in all categories above – possibly a consequence of increasing law enforcement involvement.
Crypto crime to be major point of review for lawmakers
The Chainlaysis post is informative and offers a lot of insight into how criminals use crypto to carry out their operations. Darknet markets and scams dominate the source of illicit funds received by criminal whales. Lawmakers are sure to make a note of this, as they currently view these illicit activities as a major concern.
The American Securities Body NASAA has named cryptocurrency scams the top threat in 2022. With NFT scams growing as the niche takes over the public interest, it’s no surprise that agencies like the SEC want to make investor protection the top priority.
Other countries are also following that bid to protect investors, with U.K. MPs most recently making the call for it. At any rate, 2022 should see a lot of changes in this regard.
