Fun

How law enforcement struggles with sophisticated crypto laundering

News Feed - 2024-07-11 11:07:35

Savannah FortisJul 11, 2024How law enforcement struggles with sophisticated crypto launderingAdvanced crypto laundering techniques continue to challenge law enforcement and crypto-related services, as highlighted in a new Chainalysis report on money laundering.565 Total views1 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksAccording to a report by Chainalysis, sophisticated money laundering techniques are presenting a significant challenge for law enforcement agencies and cryptocurrency service providers.


On July 11, the blockchain analysis firm Chainalysis released its “Money Laundering and Cryptocurrency Report,” highlighting the trend of billions flowing through the crypto ecosystem from illicit wallets to conversion services every month.


The report shows that these flows utilize advanced methods to obscure the origins and movement of these funds.Masking the trail


One prevalent technique mentioned in the report involves the use of intermediary wallets, or “hops,” to mask the trail of illicit funds. 


Such hops make it difficult to trace the flow of funds, with over 80% of the total value in laundering channels passing through intermediary wallets.


The increasing use of stablecoins — such as Tether (USDT) — in these transactions adds another layer of complexity, although it also introduces risks for launderers since stablecoin issuers can freeze funds.


The report highlights the June 2023 Atomic Wallet exploit carried out by North Korea-affiliated hacking group TraderTraitor as an example of the intricate tactics used in crypto-native laundering.


This incident underscores the advanced methods employed to conceal illicitly obtained funds, illustrating the persistent challenge faced by investigators.Mixers in the mix


Obfuscation services, such as mixers and privacy coins, further complicate tracing illicit funds. One example of a mixer is Tornado Cash, which blends cryptocurrencies from various users to obscure their origins. 


Related:Paxful co-founder Schaback faces 5 years jail, admits AML failure


Despite sanctions and regulatory actions, mixers have seen a resurgence in 2024, reflecting their continued popularity among bad actors. Privacy coins, such as Monero (XMR) and Zcash (ZEC), provide enhanced anonymity features that have made tracing such transactions extremely difficult, attracting illicit actors despite regulatory crackdowns.Centralized exchanges


The report also revealed that centralized exchanges remain a primary destination for illicit funds, with over 50% of these funds ending up at such exchanges due to their high liquidity and integration with traditional financial services. 


However, a significant decrease in the volume received by centralized exchanges suggests improved Anti-Money Laundering (AML) programs.


Additionally, over-the-counter brokers, particularly those operating without proper Know Your Customer procedures, have played a crucial role in facilitating the off-ramping of illicit funds.


In such instances, these brokers often advertise their services on platforms with encrypted messages, offering direct conversion to fiat currency and attracting criminals seeking anonymity.


The report underscores the need for continuous advancements in blockchain analysis tools, along with consistent measures from regulations to help combat these sophisticated tactics used in crypto-native money laundering, including proper AML laws. 


Magazine:Meet the hackers who can help get your crypto life savings back# Fraud# AML# Money Laundering# RegulationAdd reaction

News Feed

Zhiyuan Sun4 hours agoCross-chain wallet BitKeep changes name to Bitget Wallet after acquisitionThe exchange follows the likes of Binance, KuCoin and OKX in running self-custody wallets parallel to CeFi operations.1744 T
Tristan Greene6 hours agoResearchers in China developed a hallucination correction engine for AI modelsThe “Woodpecker” hallucination correction system can, ostensibly, be applied to any multimodal large language mod
German Authorities Can’t Access Bitcoins Worth $65 Million ‘Seized’ From Hacker
German Authorities Can"t Access Bitcoins Worth $65 Million "Seized" From Hacker German authorities have been unable to gain access to more than 1,700 bitcoins be
VC Roundup: Investors double down on funding for crypto, blockchain startups
Ana Paula Pereira4 hours agoVC Roundup: Investors double down on funding for crypto, blockchain startupsThis edition of Cointelegraph’s VC roundup features Plural Energy, Everclear, Ava Protocol, GoPlus and other start
Dogwifhat (WIF) hits new monthly high after 40% price rally
Nancy Lubale4 hours agoDogwifhat (WIF) hits new monthly high after 40% price rallyWIF rallies to a monthly high after a 7-day bull run added 40% to the memecoins’ value.455 Total views16 Total sharesListen to article 0
GAIMIN Poised for Significant Growth and Technology Advancement in 2022
GAIMIN Poised for Significant Growth and Technology Advancement in 2022 sponsored March 6th sees GAIMIN enter its fifth and most exciting year: GAIMIN’s distributed data proc
Goldman Sachs to launch 3 new tokenization products this year: Report
Alex O’Donnell6 hours agoGoldman Sachs to launch 3 new tokenization products this year: ReportThe products could include an RWA marketplace and will focus on the United States and Europe.4284 Total views4 Total sharesL
Trump Predicts US Economy to Recover by 2021 — Fed Chair, Economists Disagree
Trump Predicts US Economy to Recover by 2021 — Fed Chair, Economists DisagreePresident Donald Trump has predicted that the US economy will recover by 2021, citing new jobs data re
Ethereum price will be ‘sensitive’ to ETF inflows in the coming days — Kaiko
Tom Mitchelhill5 hours agoEthereum price will be ‘sensitive’ to ETF inflows in the coming days — KaikoAnother firm estimates that Ether’s price will rise no more than 24% by the end of 2024 due to underwhelming d
Why did Fetch and SingularityNET AI-tokens just surge 30%?
Zoltan Vardai7 hours agoWhy did Fetch and SingularityNET AI-tokens just surge 30%?Both AI tokens Fetch and SingularityNET staged a strong price recovery after a three-month downtrend.1613 Total views2 Total sharesListen
Stripe Brings Back Crypto Support After 4 Years — Says ‘Crypto Is Going Mainstream’
Stripe Brings Back Crypto Support After 4 Years — Says "Crypto Is Going Mainstream" Payment giant Stripe has brought back crypto support after it stopped processing bitcoin payme
Bank of America Predicts ‘Mother of All Bubbles’ for Bitcoin
Bank of America Predicts "Mother of All Bubbles" for Bitcoin Bank of America’s chief investment strategist sees “the mother of all bubbles” in