Blockchain analytics firm Chainalysis says the number of illegal transactions in the crypto space has dropped significantly in 2023, marking a shift in the upward trend from 2020 to 2022.
In a new report, Chainalysis says that illegal addresses only received $24.2 billion in cryptocurrency value last year.
In 2020, these wallets received $9.4 billion, which increased to $23. $2 billion and $39.6 billion in 2021 and 2022, respectively.
“In addition to the reduction in the absolute value of illegal activities, our estimate for the share of all crypto transaction volumes related to illegal activities has also decreased, from 0.42% in 2022 to 0.34%.”
The estimate takes into account money sent to addresses known to be illegal and to addresses stolen in crypto hacks. Chainalysis says the actual volume for 2023 may be higher as only known illegal addresses were taken into account.
“As always, we must make a caveat by saying that these figures are lower bound estimates based on the inflow to the illegal addresses we identified today. A year from now, these totals will almost certainly be higher as we identify more illegal addresses and incorporate their historical activity into our estimates.”
According to the report, revenues from crypto scams and hacking have fallen by 29.2% and 54.3% respectively, but inflows into the ransomware and darknet markets have increased after a decline in 2022. Transactions with sanctioned entities are also increasing will account for the lion’s share of illegal activities in 2023. .
“Sanctioned entities and jurisdictions accounted for a combined transaction volume of $14.9 billion in 2023, representing 61.5% of all illegal transaction volume we measured that year.”
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