Crypto

Money laundered through cryptocurrency reached $22.2 billion in 2023 – Report

Published

2 years ago

February 22, 2024

Money laundered through cryptocurrency reached .2 billion in 2023 – Report

A report by blockchain research platform, Chainalysis, has revealed that a total of $22.2 billion was laundered globally through different cryptocurrency exchanges in 2023.

The report, however, indicated that this was a significant decrease from the $31.5 billion laundered through digital currency in 2022.

According to the report, the drop could be attributed to an overall decrease in crypto transaction volume, both legitimate and illicit.

Several industry experts have argued that the anonymity of trades on blockchain technology makes it a veritable tool for money laundering. This has led to repeated calls for crypto regulation in Nigeria by stakeholders.

Destination of the funds

Chainalysis in the report noted that centralized exchanges have been the primary destination for funds sent from illicit addresses, at a rate that has remained relatively stable over the last five years.

“Over time, the role of illicit services has shrunk, while the share of illicit funds going to DeFi protocols has grown.
“We attribute this primarily to the overall growth of DeFi generally during the time period, but must also note that DeFi’s inherent transparency generally makes it a poor choice for obfuscating the movement of funds,” it said.

The company observed that 2023 mostly resembled 2022 in terms of the breakdown of service types used for money laundering, but saw a slight decrease in the share of illicit funds moving to illicit service types, and an increase in funds moving to gambling services and bridge protocols.

“If we zoom in to look at how specific types of crypto criminals laundered money, we can see that there was in fact a significant change in some areas. Most notably, we saw a huge increase in the volume of funds sent to cross-chain bridges from addresses associated with stolen funds.
“We also observed a substantial increase in funds sent from ransomware to gambling platforms, and in funds sent to bridges from ransomware wallets,” it added.

Deposit addresses

Examining the money laundering concentration at the deposit address level (deposit addresses are addresses at centralized services associated with individual users —akin to bank accounts) Chainalysis said 109 exchange deposit addresses received over $10 million worth of illicit cryptocurrency each, and collectively, they received $3.4 billion in illicit cryptocurrency in 2023.

“While that still represents significant concentration, in 2022, only 40 addresses received over $10 million in illicit crypto, for a collective total of just under $2.0 billion.
“In 2022, just 542 deposit addresses received over $1 million in illicit cryptocurrency, for a total of $6.3 billion, which was over half of all illicit value received by centralized exchanges that year.
“In 2023, 1,425 deposit addresses received over $1 million in illicit cryptocurrency, for a total of $6.7 billion, which accounts for just 46% of all illicit value received by exchanges for the year,” it said.

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Related Topics:Chainalysis cryptocurrency Money Laundering

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Crypto

Nancy Guthrie disappearance highlights cryptocurrency’s role in criminal activity

Published

5 hours ago

February 11, 2026

Press Room

Nancy Guthrie disappearance highlights cryptocurrency’s role in criminal activity

PHOENIX (AZFamily) — The high-profile disappearance of Nancy Guthrie has brought new attention to the world of cryptocurrency, with multiple ransom notes sent to media outlets demanding payment in Bitcoin in exchange for Nancy Guthrie or her whereabouts.

What is cryptocurrency?

Cryptocurrency is digital money that only exists online. It operates on a network or blockchain rather than being controlled by a bank. It allows person-to-person transactions and uses a public ledger to record transactions. Crypto is most frequently used for online payments or investments.

Crypto expert Robert Hockensmith said every transaction is tracked and verified.

“Any time you buy it, any time you sell it, any time you use it to buy a product or service, any time you connect it or take it to another place, it is identified as you touching it. That’s how it works,” said Hockensmith, who works with AZ Money Guy.

Why criminals use cryptocurrency

Despite the tracking capabilities, criminals use crypto because it’s not that simple to trace. A cybersecurity expert said a lot of criminals have found creative ways to avoid being traced.

They’ll use multiple crypto wallets and addresses to obscure their identity. Funds can be transferred globally almost instantly, and if some IP addresses are hidden, they can be harder to locate. Once a transaction is confirmed, it’s extremely difficult to reverse.

“If you think about, for example, ID theft, cybercriminals might literally steal someone’s identity and that might include their access to something like Coinbase and then use that victim’s Coinbase to receive stolen funds and move it somewhere else, same way they used to do it with wire transfers,” said Eric Foster, cybersecurity and crypto expert and CEO of Tenex.AI.

Another crypto expert said criminals will keep moving their crypto over and over again, making it harder and harder to trace. He calls crypto the modern way of transporting large sums of money and said it has become the currency of choice for criminals.

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Crypto

White House Convenes Crypto Leaders, Banks, Policymakers for Market Structure Talks

Published

17 hours ago

February 11, 2026

Press Room

Bipartisan momentum is building behind U.S. crypto legislation as the White House intensifies talks with industry, banks, and lawmakers, signaling renewed efforts to break a regulatory stalemate and advance long-awaited market structure rules.

Crypto

Perry and Jackson police partner to investigate cryptocurrency crimes

Published

1 day ago

February 10, 2026

Press Room

Perry and Jackson police partner to investigate cryptocurrency crimes

Perry and Jackson township police are partnering to investigate crimes related to cryptocurrency. The cooperation has already resulted in the recovery of stolen assets, police say.

Perry Township Police Chief Bryan D. Taylor announced Feb. 10 that as part of the collaboration, Jackson Township police will provide certified cryptocurrency investigative support for cases originating in Perry.

He wrote in a social media post that the partnership allows Perry police to leverage specialized expertise in an evolving area of financial crime, ensuring more thorough investigations and improved outcomes for victims.

“This partnership has already produced positive results,” Taylor wrote. “In a recent case originating in Perry Township, investigative efforts led by Jackson Township Police Department resulted in the successful recovery of cryptocurrency funds, which were returned to the victim. Recovering stolen digital assets is often complex and challenging, making this outcome especially meaningful for the victim and the community.”

He extended appreciation to the Jackson Township Police Department and Jackson Detective Jeffrey Aynes “for their professionalism, technical expertise and dedication throughout the investigation. Their commitment to collaborative law enforcement, and victim-focused outcomes exemplifies the strength of regional partnerships.

“Cryptocurrency crimes present unique challenges that require specialized training and expertise,” he said. “This partnership strengthens our ability to pursue these cases effectively and reinforces our shared commitment to serving and protecting our communities.”

He wrote that the Perry Township Police Department remains committed to adapting to emerging crime trends, using partnerships and pursuing justice for victims of financial crimes.