According to a study by Chainalysis, the illicit use of cryptocurrencies reached a record figure of 20.1 billion dollars in 2022. Now TRM Labs has established which are the most chosen cryptocurrencies for that.
Last year the global value of cryptocurrencies fell more than 1.6 trillion dollars and more than 2.2 trillion from the highs of 2021 (something like between 3 and more than 4 times the Argentine GDP). However, this did not stop, much less deter the actions of delinquents and criminals in the use and exploitation of cryptocurrencies. According to a study by TRM Labs, the famous bitcoin is no longer the favorite of cybercriminals who now prefer to use tether (USDT), which is the third cryptocurrency in market capitalization behind bitcoin and ethereum. The report notes that more than $7.8 billion was stolen in Ponzi (pyramid) schemes, some $1.5 billion spent on “darknet” marketplaces specializing in illegal drugs, and another $3.7 billion stolen through hacks and exploits. “For example, in 2022, approximately $2 billion was stolen through attacks on interchain bridges, which allow cryptocurrencies to pass from one blockchain to another,” the study estimates.
The blockchain analytics firm geared toward combating fraud, money laundering, and financial crime explains that “criminals are also increasingly relying on chain hopping, or moving funds through various chain networks.” blocks, as part of their money laundering strategies to hide the origin and destination of illicitly obtained profits.”
The multi-chain era has had a radical impact on the distribution of illicit cryptocurrency volume as a whole, with bitcoin’s share plummeting from 97% in 2016 to 19% in 2022, according to data from TRM Labs. “In 2016 , two-thirds of the cryptocurrency hacking volume was in bitcoin; in 2022, it accounted for just under 3%, with ethereum (68%) and Binance Smart Chain (19%) dominating the field. And while bitcoin was the exclusive currency for terrorist financing in 2016, in 2022 it was nearly replaced by assets on the TRON blockchain, at 92%,” the study says.
However, until now, there has been no systematic attempt to create a holistic overview of this new illicit crypto ecosystem. In this regard, TRM Labs identified, studied and classified more than 40 types of criminal activity, from espionage to SIM swapping and pump and dump schemes.
The truth is that the reign of bitcoin seems to have ended among cybercriminals. In this regard, TRM Labs also identified multiple pro-ISIS groups in Pakistan and Tajikistan that raise “tens of thousands of dollars in cryptocurrency to “spread propaganda and recruit fighters.” “Over the course of 2022, TRM Labs has seen a significant increase in the use of the Tron blockchain among terrorist groups and associated fundraising campaigns, with some using it exclusively. The vast majority of these actors raised donations in the stablecoin tether (USDT)”, they point out.
Among terrorist financing entities tracked by TRM Labs in 2022, there was a 240% year-over-year increase in tether use, versus a mere 78% increase in bitcoin use. To hide their trail, crypto criminals have increasingly resorted to so-called chain hopping, which involves moving money from one blockchain to another to make it more difficult to trace the funds from the outside. Consequently, if in 2016 two thirds of the cryptocurrency hacking volume corresponded to the Bitcoin network, in 2022, they represent slightly less than 3%. ethereum (68%) and Binance Smart Chain (19%) were other of the most used networks.
Despite all this, the world’s largest cryptocurrency is still king of the darknet markets. According to the TRM report, $1.49 billion was spent on such Russian “dark” markets, while the largest Western such market, ASAP Market, accounted for less than 10% of the global market share. “Most Russian-language darknet markets only support bitcoin, with no privacy coin options. This may be because they perceive a lower risk of being removed by the authorities. Instead, Westerners use more operational security measures in the chain”, they explain.
These experts conclude that the “continued proliferation of cryptocurrencies and blockchain technology” suggests that digital assets “will continue to occupy an important place” in the criminal sphere. “The good news for investigators, law enforcement, and regulators is that cryptocurrencies can provide granular visibility into the structure, operations, and, above all, the interconnectivity between different criminal actors and enterprises,” they add.
Source: Ambito
