Crypto laundering has decreased overall, although sophisticated crypto criminals such as the Lazarus Group are shifting from mixers to cross-chain bridges.
Cryptocurrencies have introduced a new frontier for money laundering, challenging the traditional methods used to disguise the illegal origins of funds. At the heart of this challenge is blockchain technology, which, with its transparent ledger, makes every transaction visible to the public. Despite this transparency, criminals creatively attempt to obfuscate the trace of their funds, aiming to convert their illicitly obtained cryptocurrencies into fiat currency undetected.
The “2024 Crypto Crime Money Laundering Report” from Chainalysis highlights a notable evolution in the tactics employed by these individuals, reflecting broader shifts in the landscape of digital financial crime. This analysis not only underscores the adaptability of criminals to technological advancements but also marks the ongoing battle between these illicit actors and regulatory efforts to curb money laundering in the digital age.
Chainalysis’s updated findings reveal a significant shift in cryptocurrency transactions linked to illicit activities in 2023. Illicit addresses transferred $22.2 billion of cryptocurrency to various services, a notable reduction from $31.5 billion in 2022. This decline exceeds the overall decrease in transactional volume, with money laundering activities dropping by 29.5% against a 14.9% fall in total transaction volume. This discrepancy suggests that factors beyond mere transactional slowdowns are at play in the reduction of cryptocurrency laundering.
