TechFlow news, according to a Chainalysis report, money launderers are increasingly using cryptocurrency to obscure the origin and movement of illicit funds. The report notes that due to its cross-border, instant, and low-cost transaction features, cryptocurrency has become a tool for laundering proceeds from offline crimes such as drug trafficking and fraud.
Since the beginning of this year, Bitcoin's value has risen nearly 55%. Money launderers are employing methods such as crypto mixers, cross-chain bridges, and wallet "hopping" to conceal fund flows. Since 2019, nearly $100 billion in funds have moved from known illicit wallets to conversion services, peaking at $30 billion in 2022.
Nonetheless, Chainalysis points out that due to blockchain transparency, cryptocurrency money laundering activities remain traceable and analyzable. As global adoption of cryptocurrency increases, such money laundering activities are expected to become more widespread.
