Illicit crypto transactions

[James Anderson]

Illicit crypto transactions hit $24.2B in 2023, a notable drop. Figures are conservative estimates, likely to rise next year as more illegal addresses are uncovered.

[mocacinno]

Offcourse, this amount (whilst being staggering) doesn't give us all that much info if it isn't plotted against the total volume (including non-illicit transactions).

I googled around a bit, but could not find any reliable source estimating the total volume. Capgemini did write this article at the end of 2023:
https://www.capgemini.com/news/press-releases/global-non-cash-transaction-volumes-set-to-reach-1-3-trillion-in-2023/
I have not vetted it, nor checked their sources, but they claim a total volume of 1.3 trillion in 2023... So, if we plug in 2023's numbers from the graph we get:

((24.2 x 10⁹)/(1.3 x 10¹²))*100 = 1.8%

Eventough the numbers in the graph look staggering, it *might* just be around ~2% of the total volume, which might be more or less ~ok~. I have no idear how the fiat world would look, but i wouldn't be supprised if the amount of FIAT payments received by illicit sources were also a couple percent

[yohananaomi]

Illicit crypto transactions hit $24.2B in 2023, a notable drop. Figures are conservative estimates, likely to rise next year as more illegal addresses are uncovered.

It is true that it is clear from the graph you are referring to that there is a decline, but the value is still fantastic and quite large, so the possibility of it being reduced will be difficult to happen because the results are extraordinary. Maybe this year there will be more, along with the many transactions that occur and sufficient growth. We will wait for further reports from you.

[TomPluz]

Illicit crypto transactions hit $24.2B in 2023, a notable drop. Figures are conservative estimates, likely to rise next year as more illegal addresses are uncovered.

It is true that it is clear from the graph you are referring to that there is a decline, but the value is still fantastic and quite large, so the possibility of it being reduced will be difficult to happen because the results are extraordinary. Maybe this year there will be more, along with the many transactions that occur and sufficient growth. We will wait for further reports from you.

With the possible bull run happening in the cryptocurrency industry, we should be expecting an above-then-normal level pf illicit or illegal transactions to occur this year and quite strongly also into 2025. The figure above can be staggering, to say the least, but am sure it is just the tip of the iceberg meaning there could be more if we will continue on uncovering not to mentioned those transactions that goes off the radar. This is a weak spot in the cryptocurrency industry but we should note that no industry is safe from this malady even the religious one. Now, with that in the background, compared to the fiat money side, this is just so minuscule. It so happened that cryptocurrency can easily be the focus as this is relatively new to many and authorities are looking at this industry with a lot of focus and energy. As scamming and hacking are getting to be so lucrative, we can expect more and more attempts and many will be successful resulting into movements of digital assets away from their legal owners to be converted to cash in order to get away from the crime.

Note: The post above by OP is taken from here: https://twitter.com/chainalysis/status/1747992066943066504 and
https://www.chainalysis.com/blog/crypto-hacking-stolen-funds-2024/

[yohananaomi]

Illicit crypto transactions hit $24.2B in 2023, a notable drop. Figures are conservative estimates, likely to rise next year as more illegal addresses are uncovered.

It is true that it is clear from the graph you are referring to that there is a decline, but the value is still fantastic and quite large, so the possibility of it being reduced will be difficult to happen because the results are extraordinary. Maybe this year there will be more, along with the many transactions that occur and sufficient growth. We will wait for further reports from you.

With the possible bull run happening in the cryptocurrency industry, we should be expecting an above-then-normal level pf illicit or illegal transactions to occur this year and quite strongly also into 2025. The figure above can be staggering, to say the least, but am sure it is just the tip of the iceberg meaning there could be more if we will continue on uncovering not to mentioned those transactions that goes off the radar. This is a weak spot in the cryptocurrency industry but we should note that no industry is safe from this malady even the religious one. Now, with that in the background, compared to the fiat money side, this is just so minuscule. It so happened that cryptocurrency can easily be the focus as this is relatively new to many and authorities are looking at this industry with a lot of focus and energy. As scamming and hacking are getting to be so lucrative, we can expect more and more attempts and many will be successful resulting into movements of digital assets away from their legal owners to be converted to cash in order to get away from the crime.

Note: The post above by OP is taken from here: https://twitter.com/chainalysis/status/1747992066943066504 and
https://www.chainalysis.com/blog/crypto-hacking-stolen-funds-2024/

You are right, this is something real that can be published. What about things that are not well recorded? Of course, this will be even greater, because something that is illegal will definitely not be published for real unless it can be known from the experience of frequent observations. This year and next year are allegedly the busiest years in all activities regarding crypto trading, so it could be said that there will be a significant increase that could occur without being recorded. Now it has become like a routine job for fraud and hacking because it is very profitable to make a living that can be done at any time. I agree with you that if there is no transaction, it is better to immediately exchange it for fiat, and later you can change it again if necessary for the transaction.

[Geey]

Illicit crypto transactions hit $24.2B in 2023, a notable drop. Figures are conservative estimates, likely to rise next year as more illegal addresses are uncovered.

Seeing the journey of Bitcoin transactions is very interesting, making investors even more enthusiastic about trading and getting big profits from market movements. let's look at the graph above, in 2021-2022 the increase in bitcoin is so big compared to before and here everyone who holds bitcoin gets big profits, as the years go by bitcoin transactions decrease so much that most people are confused and afraid, whether bitcoin will experience a decline which is continuous. but we as investors must be calm in such conditions otherwise you will experience big losses.

[Fivestar4everMVP]

I am struggling to fully understand what this illicit addresses mentioned in the graph is all about, is this talking about or referring to addresses that have been marked as a scam, fraud or hacker's address due to the address involvement in receiving funds through any of the aforementioned vices?
Or is the addresses being talked about here are like those that do send out dust transactions for phishing purposes, to random addresses belonging to crypto users?

Sorry if my query is kinda noob, I am trying to understand this clearly.

[KryptoBull]

I am struggling to fully understand what this illicit addresses mentioned in the graph is all about, is this talking about or referring to addresses that have been marked as a scam, fraud or hacker's address due to the address involvement in receiving funds through any of the aforementioned vices?
Or is the addresses being talked about here are like those that do send out dust transactions for phishing purposes, to random addresses belonging to crypto users?

Sorry if my query is kinda noob, I am trying to understand this clearly.

I think illegal money includes everything you mentioned: crypto related to hacks, data kidnapping, money laundering, terrorist financing... Anyway, that amount of crypto is tiny compared to the amount of money laundered through fiat, and even better, the total value has dropped over the past year. The reason may be that CEXs have cooperated with governments to freeze these illegal funds, while making it easier for police to find fraudsters. This makes crypto no longer a good choice for bad guys to take advantage of. Unlike fiat, all crypto transaction data will be saved on the blockchain.

Although the amount has decreased, billions of dollars is still a huge number, many users have lost money and trust. It would be better if those billions of dollars were invested in potential projects and investors could feel secure when participating in this market.

[pacar_tiri]

I am struggling to fully understand what this illicit addresses mentioned in the graph is all about, is this talking about or referring to addresses that have been marked as a scam, fraud or hacker's address due to the address involvement in receiving funds through any of the aforementioned vices?
Or is the addresses being talked about here are like those that do send out dust transactions for phishing purposes, to random addresses belonging to crypto users?

Sorry if my query is kinda noob, I am trying to understand this clearly.

It seems that transactions using cryptocurrency have not completely decreased; it appears that more and more people are using cryptocurrency because the price of Bitcoin has increased and transactions on the network have been observed to be busy, so that transactions have increased, and this shows that there are still many people who use cryptocurrency for trading or investing in a particular project.

[TomPluz]

I think illegal money includes everything you mentioned: crypto related to hacks, data kidnapping, money laundering, terrorist financing... Anyway, that amount of crypto is tiny compared to the amount of money laundered through fiat, and even better, the total value has dropped over the past year. The reason may be that CEXs have cooperated with governments to freeze these illegal funds, while making it easier for police to find fraudsters. This makes crypto no longer a good choice for bad guys to take advantage of. Unlike fiat, all crypto transaction data will be saved on the blockchain.

Although the amount has decreased, billions of dollars is still a huge number, many users have lost money and trust. It would be better if those billions of dollars were invested in potential projects and investors could feel secure when participating in this market.

As years go by with the cryptocurrency industry, we realized there are many ways and means to track transactions and to identify wallets used by illegal transactions to the point that there are cases in court that successfully identified people for doing crimes using cryptocurrency as medium of exchange. One day, we can see that using fiat money can even be harder to track compared to cryptocurrency because when fiat money is transferred from one person into another manually tracing them is already impossible not unless they are using banks or any financial intermediary. So no wonder we have a slowing down of illegal transactions using crypto and that is why they realized that fiat money is the real and safer choice. Unfortunately, fiat money will not get a black eye for this because it is not certainly the fault of fiat money if it is being used illegally...but when crypto is used it is a big bad news. In other words, we live in a world so unfair and beyond logic.

[ABCbits]

I am struggling to fully understand what this illicit addresses mentioned in the graph is all about, is this talking about or referring to addresses that have been marked as a scam, fraud or hacker's address due to the address involvement in receiving funds through any of the aforementioned vices?
Or is the addresses being talked about here are like those that do send out dust transactions for phishing purposes, to random addresses belonging to crypto users?

Sorry if my query is kinda noob, I am trying to understand this clearly.

The graph is published by Chanalysis as part of their upcoming report called "The Chainalysis 2024 Crypto Crime Report". I expect that report explain how they categorize illicit address in detail. Anyway, i believe it's the former (address involved in crime) since they mention amount of money involved.

[Evgenklm]

I believe that the increase in illegal cryptocurrency transactions in 2023 is a cause for serious concern. This phenomenon could negatively affect the reputation of cryptocurrencies and lead to increased regulation in this area. However, perhaps ordinary users shouldn't worry if they follow all the rules and ensure the security of their transactions.

[MrSpasybo]

I believe that the increase in illegal cryptocurrency transactions in 2023 is a cause for serious concern. This phenomenon could negatively affect the reputation of cryptocurrencies and lead to increased regulation in this area. However, perhaps ordinary users shouldn't worry if they follow all the rules and ensure the security of their transactions.

Perhaps you have not read the content of this topic carefully: the total value of illegal crypto has decreased in 2023 and is lower than in 2022, not vice versa.

As what other members mentioned above: compared to fiat, crypto is not the preferred choice of bad actors. We should not be deceived by inaccurate news or impressive statements by politicians.

I hope that as technology matures and investors become more knowledgeable and alert, we won't have as many scams in this market in coming cycle!

[yohananaomi]

I believe that the increase in illegal cryptocurrency transactions in 2023 is a cause for serious concern. This phenomenon could negatively affect the reputation of cryptocurrencies and lead to increased regulation in this area. However, perhaps ordinary users shouldn't worry if they follow all the rules and ensure the security of their transactions.

Last year's transactions were quite frightening, and it is not impossible that this year they will be even bigger because activity was quite high starting last year. It is not easy to avoid illegal transactions because it has become a chain that seeks mutual benefit from everything that can be done. Obviously, I agree that this phenomenon will have a negative impact, but because it happens so often, everyone seems to just ignore it, and this incident is normal and understandable. But regulations are also now continuing to grow to overcome this, and they will continue to increase as long as there is seriousness from all parties.

[0t3p0t]

Based on that graph, I can see the consistency of scam from the previous years to the present, meaning there are still cryptocurrency enthusiasts who fall into the trap of scammers. Here in my country I even heard the news about influencers and popular individuals still got scammed. Still a lot of people within crypto and not into it are falling to get rich quick scheme that is why they easily fall victim to this kind of modus.