4% of crypto whales are criminals, and they $25B among them: Chainalysis

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Chain analysis data shows that 4,068 criminal whales (nearly 4% of all whales) handle over $25 billion in cryptocurrency.

The blockchain analysis firm defines a criminal whale as any private wallet containing more than $1 million in cryptocurrency, with more than 10% of the funds received from illegal addresses linked to activities such as scams, scams, and malware.

The data is from the Crime Scales section of the Crypto Crime Report, which examines criminal activity on the blockchain from 2021 to early 2022. The detailed report also covers topics such as ransomware, malware, dark web marketplaces, and non-fungible tokens. . Related crimes.

In total, Chainalysis has identified 4,068 criminal whales who own more than $25 billion in cryptocurrency. Criminal whales make up 3.7% of all crypto whales – that is, private wallets containing more than $1 million in cryptocurrency. Transfer.

Data show that 1,374 whales received between 10% and 25% of the balance from malicious sources, while 1,361 whales received between 90% and 100%. Those with between 25% and 90% of illegal drugs accounted for a total of 1,333 criminal whales.

Sharing whale balance through illegal addresses: String analysis
“While stolen funds dominate the overall criminal balance sheet, dark web markets are the largest source of illicit funds directed to criminal whales, followed by second-hand frauds and stolen funds,” the report says.

Related Topics: Chain Analysis Report Shows Most NFT Laundry Retailers Lose Money

illegal transaction activity
Regarding illegal transactions, the report shows that criminal addresses received more than $14 billion in 2021, up 79% from $7.8 million in 2020.

The value obtained by the type of cryptocurrency: String analysis
Much of that $14 billion figure last year was attributed to fraud, which increased 82% year-over-year to $7.8 billion. Decentralized Finance (DeFi) carpets have been highlighted as a major source of the $2.8 billion scam:

“It should be noted that approximately 90% of the total value lost due to carpeting in 2021 may be due to fraudulent central exchange Thodex, whose CEO disappeared shortly after the exchange prevented users from withdrawing funds.”
Theft also increased by 516% to $3.2 billion as a result of illegal transactions, with the DeFi sector once again becoming a problem.

On the positive side, Chainalysis notes that total US dollar transactions in 2021 amounted to about $15.8 trillion, with illegal addresses accounting for just 0.15% of this figure, compared to 0.34% the year before.

Crime is becoming a smaller and smaller part of the cryptocurrency ecosystem. The ability of law enforcement agencies to tackle crypto-related crimes is also developing. We saw many examples of this before 2021, from the CFTC’s indictment of several investment fraudsters to its removal by the FBI. The report said the inventory produced from REvil ransomware for OFAC sanctions against Suex and Chatex.

Source: CoinTelegraph

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