1. According to a report from Chainalysis, the total cryptocurrency value received by illicit addresses reached $20.1 billion in 2022.
2. This represents an all-time record, significantly transcending the 2020 marker of $8 billion.
3. 44% of the illicit transactions in 2022 are attributed to OFAC’s ambitious and difficult-to-enforce crypto sanctions.
In 2022, illicit crypto transactions reached an all-time high, a report from Chainalysis revealed. This was caused by the equally record-breaking scale of international sanctions, with 44% of the illicit transactions attributed to the United States Office of Foreign Assets Control’s (OFAC) ambitious and difficult-to-enforce crypto sanctions.
The report showed that the total cryptocurrency value received by illicit addresses amounted to $20.1 billion in 2022, a 10% increase from the 2021 figure of $18 billion. This number is even more significant when compared to the 2020 figure of $8 billion, representing an increase of 60%.
This growth was so drastic that it couldn’t even be included on the graphs due to scale issues. Chainalysis estimated that the sanctions-related transaction volumes rose to the 10% million mark. This is particularly notable when compared to the failed crypto businesses like FTX, Celsius, Three Arrows Capital, Terraform Labs and others that are currently under criminal investigation in multiple jurisdictions.
As the measure of illicit transaction volume grows over time, analysts are continuously identifying new addresses associated with criminal activity. This means that the total value of $20.1 billion may not be final, and the numbers are likely to increase in the future.
The increasing trend of illicit crypto transactions is a cause for concern, and calls for the implementation of measures to combat criminal activities. Governments around the world are taking steps to regulate the crypto industry, and it is hoped that this will lead to a decrease in the number of illicit crypto transactions.