Cryptocurrency crimes reached record highs last year in terms of value. Last year, $14 billion was sent to illegal addresses. That is, this figure is 79 percent more than the $ 7.8 billion in 2020. According to a blog by blockchain analysis firm Chainalysis, there are already more than $10 billion in crypto deposits held at these illegal addresses, mostly in wallets.
What is the matter
Illegal addresses refer to those wallets, which are used in criminal activities. Such as activities like ransomware, Ponzi schemes and scams. According to the blog, total transactions increased to $15.8 trillion last year, which was more than 550% from 2020 levels.
Firm engaged in investigation
Chainalysis said that the 0.15% figure could still rise. As the firm is trying to identify the other illegal address. Addresses that were involved in illegal transactions. In an earlier report, Chainalysis had said that 0.34 percent of crypto-related transactions in 2020 were related to illegal activities. This figure has now increased to 0.62 percent.
Defi Most Responsible
Chainalysis said that governments are being alerted to the crime related to cryptocurrency and are preparing to ban it. But innocent investors are falling prey to it. The report also said that fund thefts and scams have increased due to the rise of Defi i.e. decentralized finance. In 2020, $162 million in cryptocurrency was stolen from the Defi platform, which was 31 percent of the amount stolen that year. In 2021, this amount increased by 1330 percent to $ 2.3 billion.
Criminals playing with technology
DeFi transactions up 912% in 2021. According to Chainalysis’s head of research, Kim Grauer, the rise in crime related to Defi reflects how criminals are using new technology.