According to analytics firm ChainAnalysis, more than 4000 crime-related addresses hold over $25 million in cryptocurrencies. Criminal whales represent almost 4% of all crypto whales. The addresses listed cover crimes such as money laundering, drug dealing and terrorism.
In 2021, the number of illicit activities in the cryptocurrency industry steadily increased as private funds began to flow into the industry. But with the increasing activity of criminal elements in crypto, law enforcement has discovered a new way to seize digital assets from criminals. According to analytics firm
, in 2021, the IRS-CI seized over $3.5 billion in cryptocurrencies from wallets flagged for criminal activity. At the same time, regulators do not disclose technical methods of confiscating such assets.
Criminal Whales’ Crypto Presence Increasing
According to ChainAnalysis, the majority of “crime wallets” are related to stolen funds and darknet markets. In 2021, hackers and scammers managed to steal at least $8 billion from inexperienced newcomers to the industry.
At the end of 2021, the volume of funds concentrated in crime wallets increased after a series of DeFi attacks. Numerous platforms and users have fallen victim to various vulnerabilities found in smart contracts.
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