Latest data: 4% of whales in the digital currency market have a history of criminal activity

Chainalysis data show that these 4,068 offending whales, which make up about 4 percent of the total whale market, hold more than $ 25 billion in digital currency.

According to the Kevin Telegraph, China Analyst reports that the whale identified the culprit as any wallet address containing more than $ 1 million in digital currency that earned ten percent or more of the savings in its wallet in illegal address transactions. These illegal addresses are involved in criminal activities such as fraud, counterfeiting and malware.

The data in this report are taken from the “Criminal Balance” section of the Digital Currency Report. This report examines criminal activities in the Chinese blockchain between 2021 (1399) and earlier this year. This report addresses issues such as ransom crimes, malware, black markets and counterfeit tokens (NFT).

The report identified a total of 4,068 whale violators worth a total of $ 25 billion in digital currencies. According to the report, offending whales make up about 3.7 percent of the total number of whales in the digital currency market.

The data show that 1,374 whales received between 10 and 25 percent of their portfolio inventory from criminal sources, while 1,361 whales received between 90 and 100 percent of the value of their portfolio through these sources. Another 1,333 whales earn between 25 and 90 percent of the value of their portfolio from sources involved in illegal activities.

Latest data: 4% of whales in the digital currency market have a history of criminal activity
The ratio of the level of criminal activity in the portfolio of criminal whales

According to the report, while stolen funds account for the largest number of crimes, Dark Net is the largest source of funding for criminal whales. Then there are the frauds and in third place are the stolen funds.

Illegal transactions

The report shows that last year these addresses received more than $ 14 billion. That’s 79 percent more than the $ 7.8 million they received last year.

Latest data: 4% of whales in the digital currency market have a history of criminal activity
Amounts received from whales for various crimes

Most of the $ 14 billion is in fraudulent transactions. These transactions increased by 82% compared to the previous year and reached 7.8 billion dollars. Rug pulls $ 2.8 billion from decentralized financial projects (DEFI) received special attention.

However, it should be noted that almost 90% of the total withdrawals last year were related to a centralized fraudulent exchange called Thodex, which was run by the CEO as soon as the exchange stopped consumers from withdrawing funds. He also disappeared.

Theft transactions also increased by 516 percent from the previous year, reaching $ 3.2 billion, with a large volume of transactions in this sector related to Difai projects.

Read also: Are you planning to borrow from Defai? 3 threats you need to know

This report also had positive aspects. Total transactions last year amounted to 15.8 trillion dollars, with criminal addresses representing only 0.15 percent of the value, down 0.34 percent from the previous year.

Over time, criminal activities involve a smaller share of the digital currency ecosystem. The ability of law enforcement agencies to deal with crimes based on digital currencies is also evolving. Several examples of these clashes have been reported. Charges against the US Commodity Futures Trading Commission (CFTC) against several fraudsters, the removal of the buyout software REvil from the US Federal Bureau of Investigation (FBI), sanctions against Suex and Chatex from the Office of Foreign Investment Control (OFAC) are some of these are efforts.

The publication New data: 4% of whales in the digital currency market have a history of criminal activity appeared for the first time in digital currency.

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