Because they own more than $25 billion in digital assets, nearly 4% of crypto whales are criminals.
According to Chainalysis, a blockchain analytics company, criminals account for 3.7 percent of all bitcoin whales. In addition, these nefarious actors jointly hold more than $25 billion in digital assets.
Almost 4% of Crypto Whales are criminals
Cryptocurrencies have tremendous advantages, and many experts believe they will usher in a financial revolution. However, both bitcoin and altcoins have detractors. According to them, drug traffickers, terrorists, and money launderers use such assets in their illegal activities.
According to the indictment above, Chainalysis, a New York-based blockchain analysis business, discovered 4,068 illegal cryptocurrency whales (3.7 percent of all) who collectively own more than $25 billion in digital assets. Each entity has more than $1 million in cryptocurrency, according to the business.
It is worth mentioning that most whales acquired either a modest or significant portion of their overall amount from illicit addresses. For example, 1,374 received between 10% and 25% of their assets from illicit wallets, while 1,361 received between 90% and 100%.
Criminal whales obtained illicit funding from a variety of sources. The Darknet (37,7 percent) came in first, followed by frauds (32.4 percent). The top five were stolen dollars, a fraudulent shop, and malware.
Chainalysis also investigated the locations of those offenders. It allocated UTC zones to the 768 whales with enough activity in their wallets to generate a good approximation. The zones with the most wrongdoers are 2, 3, and 4. Surprisingly, this region comprises Russia’s two largest cities, Moscow and Saint Petersburg. These time zones also apply to South Africa, Saudi Arabia, and Iran.
In 2021, criminals laundered billions of dollars in cryptocurrency
The blockchain analytics firm has revealed that the entire bitcoin value laundered in 2021 will be $8.6 billion, 30% greater than in 2020.
Bad actors transferred approximately 17% of those assets to Decentralized Finance apps, up from 2% the previous year.