Over $24 Billion in Cryptocurrency Received by Illicit Addresses in 2023, Down 40% from 2022: Chainalysis

cryptonews.com:

Crypto research firm Chainalysis revealed that at least $24.2 billion worth of cryptocurrency was sent to illicit wallet addresses in 2023, encompassing addresses associated with sanctions, terrorist financing, and scams. The figure is considered a conservative estimate, and Chainalysis expects it to rise as more illicit addresses are identified.

Chainalysis focused on crypto-related crime, acknowledging the challenge of distinguishing proceeds from non-crypto-related criminal activities in blockchain data alone. The data included crypto sent to identified illicit addresses and funds stolen in crypto hacks.

Sanctioned entities and jurisdictions accounted for $14.9 billion of the total illicit transaction volume in 2023, making up 61.5% of the measured illicit transaction volume for the year.

Reportedly, in 2022, the estimated illicit transaction volume was $39.6 billion, showcasing the growth in identified addresses and the impact of sanctioned services on totals. Overall, t he share of all crypto transaction volume associated with illicit activity decreased from 0.42% in 2022 to 0.34% in 2023.

While Bitcoin was the dominant choice among cybercriminals in 2021, stablecoins now account for the majority of illicit transaction volume. This shift aligns with the overall growth of stablecoins in both legitimate and illicit activities. However, certain forms of cryptocrime, such as darknet market sales and ransomware extortion, still predominantly involve Bitcoin.

Crypto scamming and hacking revenues declined significantly in 2023, with illicit revenue down by 29.2% and 54.3%, respectively. Scamming has evolved, with scammers adopting romance scam tactics to build relationships with individuals for fraudulent investment