Cryptocurrency Crime Hits All-Time High in 2021, 79% Growth: Says Chainalysis
Chainalysis has released a report in which it gives information related to crypto crime all over the world. Has recorded a significant surge.
It has already been said that there is still illegal work that is going on in the market of cryptocurrency and also told that many illicit addresses have been found where the crypto holds the amount of $10 billion worth of currency.
Highlighted Facts
- All the illicit addresses are also defined as the Wallets that are tied up to criminal activities.
- Defi transaction in the year 2021, a total of 912 percent of the surge has been recorded.
- At the current time, people are using the Defi protocols to launder the money for illegal works.
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In terms of value, the crime with the help of cryptocurrency has been increased and recorded a high in the number in the last year in 2021. The total amount of $14 billion (about 1,04,200) crore in digital currencies is up to 79 %. And at that time in 2020, it was about $7.8 billion as all information was released in the form of a blog on Thursday, 6th January.
The illicit address has been defined as the wallet and these are ties to criminal activities such as ransomware, Ponzi schemes, and scams.
The agency, Chainalysis also said that still 0.15 percent of the surge could have been detected in the future time.
It also has revealed that earlier the amount of total crypto only 0.34 percent was associated with illegal activity. And that same number from 0.34 percent, has been increased to 0.62 percent.
Chainalysis Words
“Criminal abuse of cryptocurrency creates huge impediments for continued adoption, heightens the likelihood of restriction being imposed by governments, and worst of all victimizes innocent people around the world'.
The report also featured the information that the Decentralised finance used to provide the facility to denominated lending outside traditional banking. An offense has been the big factor in stolen funds and scams.
In the past time, the illegal use of decentralized finance was about $162 million worth of cryptocurrency was stolen from Defi that is about 13 % of the total stolen money in 2020. And this also shows the increment of about 335 % of the stolen money from DeFi in 2019.
It also said, “The increase in DeFi related crimes is an example of how criminals often exploit new technologies” above words are recited by the head of research at Chainalysis told in an email to Reuters by Kim Grauer.
Also added
“When DeFi started to grow this year, we saw a large increase in DeFi protocols used to launder money as well as the DeFi protocols being the actual victims of crimes such as hacking,” said Chainalysis.
