A new study by blockchain analytics firm Chainalysis has revealed that illicit crypto transaction volume increased for the second consecutive year, reaching an all-time high of $20.1 billion in 2022.
According to the report, the illicit volume increased to 0.24% from 0.12% in 2021, accounting for less than 1% of the total volume of on-chain transactions. Chainalysis explained that 44% of the illicit transaction volume stemmed from U.S.-sanctioned entities, most associated with the Russian crypto exchange Garantex.
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Garantex in April 2022, citing the exchange’s willful disregard for anti-money laundering and countering the financing of terrorism (AML/CFT) regulations. However, due to its Russian origin, the firm has continued its operations, thereby enabling illicit transactions.
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