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.