TechFlow reported that according to a Chainalysis report, money launderers are increasingly using cryptocurrencies to conceal the source and flow of illegal funds. The report pointed out that cryptocurrencies have become a money laundering tool for offline crimes such as drug trafficking and fraud because of their cross-border, instant and low transaction costs.
Bitcoin is up nearly 55% so far this year. Money launderers use methods such as crypto mixers, cross-chain bridges and wallet “hopping” to hide the flow of funds. Since 2019, nearly $100 billion has been transferred from known illicit wallets to conversion services, with a peak of $30 billion in 2022.
Nonetheless, Chainalysis noted that cryptocurrency money laundering can still be tracked and analyzed due to the transparent nature of the blockchain, and that such money laundering is expected to become more prevalent as global acceptance of cryptocurrencies increases.
