Crypto Money Laundering Dropped 30% Last Year, Chainalysis Says
Illicit crypto activity decreased in 2023 to $22.2 billion from $31.5 billion in 2022, despite a smaller drop in transaction volumes. Only about 1% of money laundering involves crypto, with a total of $2 trillion laundered annually. In 2023, blockchain bridges and gambling services were used more for laundering, while DeFi protocols saw increased illicit fund usage. The transparency of DeFi makes it unsuitable for obfuscating funds, leading to the shutdown of crypto accounts linked to groups like Hamas. The Lazarus Group adapted its money laundering strategies by using mixers like YoMix and cross-chain bridges to evade detection. The value of funds sent to mixers from illicit addresses almost halved due to law enforcement and regulatory efforts, such as the shutdown of mixer Sinbad. The U.S. Treasury sanctioned Sinbad for alleged ties to North Korea's hacking group. These changes highlight the adaptability of sophisticated illicit actors in exploiting new crypto services for money laundering.
