Illicit Funds in Crypto Ecosystem Shrank 9% Last Year, Yet Criminals Still Handled Nearly $35B: TRM Labs

CoinDeskPolicyPublicado em 2024-03-26Última atualização em 2024-03-27

Resumo

Almost half of all illicit crypto volume occurred on the TRON Blockchain, the report said.

  • A new TRM Labs report has found that illicit funds in the crypto ecosystem shrunk by 9% from 2022 to 2023.
  • Yet criminality through crypto has risen in some forms. For example, sales of illicit drugs on darknet marketplaces grew to $1.6 billion from $1.3 billion recorded in 2022.
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Illicit activity in the cryptocurrency ecosystem appears to have reduced, with the total illicit funds shrinking by 9% in 2023 compared to 2022, even though criminals still handled nearly $35 billion worth of cryptocurrencies, blockchain analytics firm TRM Labs found.

TRM Labs published a report titled “The Illicit Crypto Economy” on Wednesday, which looked at the key trends of 2023.

The firm found that scams and frauds accounted for nearly a third of all crypto crimes 2023. Critically, the share of illicit funds in crypto fell over 2023, even though TRM found it is still substantially higher than existing industry estimates.

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Regulatory pressure appears to have resulted in a drop in hacked and sanctions-exposed funds volumes. The report said the U.S. alone “tripled the number of crypto crime-linked entities and individuals subject to sanctions.” However, hackers linked to North Korea made off with 30% less than they did in 2022. Hack proceeds fell by over 50% to $1.8 billion from $3.7 billion in 2022.

The report also stated that sales of fentanyl and its precursor materials dropped by 150% in volume between 2023 and 2022. Yet, vendor sales increased by over 97% year-on-year, from $16 million to $33 million.

However, sales of illicit drugs on darknet marketplaces grew to $1.6 billion from $1.3 billion recorded in 2022.

The report said almost half of all illicit crypto volume (45% in 2023, up from 41% in 2022) occurred on the TRON Blockchain. Stablecoin Tether (USDT) had the largest share of illegal volume, at $19.3 billion, compared to Ethereum (24%) and Bitcoin (18%).

Regarding terrorism financing, the number of unique TRON addresses that received Tether rose by 125% in 2023. TRON representatives did not immediately respond to a CoinDesk request for comment.

Read More: Munchables Exploited for $62M, Hack Linked to Rogue North Korean Team Member

Edited by Parikshit Mishra.

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