Key Points:
Despite an overall decrease of 9% in illicit crypto funds from 2022 to 2023, certain areas have witnessed a surge in criminal activity, notably in the sales of illegal drugs on darknet markets, which spiked from $1.3 billion to $1.6 billion during the same period.
The report, titled “The Illicit Crypto Economy,” delved into the key trends observed throughout 2023. Notably, scams and frauds accounted for nearly a third of all crypto crimes during the year. Despite this concerning statistic, there was a notable decline in the share of illicit crypto funds within the crypto space, although it remains significantly higher than industry estimates.
TRM Labs attributed regulatory pressures to a reduction in volumes of hacked and sanctions-exposed funds. Particularly, the United States intensified efforts, tripling the number of crypto crime-linked entities and individuals subject to sanctions. However, hackers affiliated with North Korea saw a 30% decrease in proceeds, with hack proceeds dropping by over 50% from $3.7 billion in 2022 to $1.8 billion in 2023.
Interestingly, Tether emerged as the most utilized stablecoin for criminal activities in the cryptosphere last year.
Despite an overall decline in illicit transactions within the sector, USDT was linked to $19.3 billion in illicit transactions in 2023, down from $24.7 billion the previous year. Furthermore, TRM Labs highlighted USDT on the Tron blockchain as the currency of choice for terrorist financing entities in 2023.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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