According to the US Treasury Department’s assessment, more people are still laundering money using fiat currencies rather than digital currencies. According to the research, “the use of digital assets for money laundering remains much below that of fiat cash and more traditional means.”
According to the National Money Laundering Risk Assessment, “digital assets” are currently expanding within the growing arsenal of money launderers. Many criminals are increasingly embracing crypto assets to hide their funds and avoid being tracked down. The report identified “anonymity enhancing technologies” like DeFi as possible offenders.
Furthermore, threat actors may utilize the promise of high returns from the unpredictable cryptocurrency market to entice their victims into disclosing personal information. In some circumstances, they employ various phishing techniques to entice them to click or open a malware-infested document. Once the threat actors have obtained important information, they may demand a ransom payment from the victim. These payments are now typically required in cryptocurrency, where the funds are irreversible and the hackers’ identities are concealed.
According to the report, the usage of cryptocurrency as a tool of money laundering is expanding on a daily basis. In 2021, criminal blockchain addresses received more money than ever before, according to a comparable report by Chainanalysis.
According to Chainanalysis, the share of unlawful funds in the crypto ecosystem is at an all-time low, accounting for only 0.15 percent of all transactions. This represents a decrease from 0.62 percent in 2020 and 3.37 percent in 2019.