According to Kim Grauer, Director of Research at Chainalysis, crypto-related crime will likely decrease to a smaller percentage of the entire business in the coming year as law enforcement takes advantage of blockchain technology’s transparency.
Illicit cryptocurrency transaction volume has never been lower, accounting for only 0.15 percent of total transaction volume in 2021.
Grauer predicted that the adoption of crypto over illegal use would speed up until 2022, and that the use of crypto by criminals would be phased out by then.
Law enforcement victories continue to show criminals that cryptocurrency’s inherent openness makes it an unappealing method of transmitting illicit cash. When it comes to illegal finance, cash is still king, and that is unlikely to change.
Rug pulls became the preferred trick of crypto-criminals in 2021. Scamming income increased by 82 percent to $7.8 billion in 2021, with rug pulls accounting for almost $2.8 billion of that amount.
However, according to Grauer, this does not necessarily mean that rug pulls will continue to be the most common swindle in 2022. As the web3 sector evolves, criminals are more likely to “exploit emerging technology” like DeFi, DAOs, and NFTs
Criminals began targeting DeFi platforms not just for assaults, but also to launder money.
“Recessions and depressions may fuel an upsurge in criminal activities across all economic markets, not just crypto,” Kim explained.
The IRS Criminal Investigations reported in November 2021 that non-tax investigations have resulted in the seizure of approximately $3.5 billion in bitcoin.
According to Chainalysis, cryptocurrency-based crime reached a new all-time high in 2021, with criminal addresses collecting $14 bn, up from $7.8 bn in 2020.
