Chainalysis Reports Near 4% of Crypto Whales Considered ‘Criminal’
A new report from market intelligence firm, Chainalysis, provides insights on illicit activities and criminal crypto whales’ activities.
Chainalysis shows that these whales largely increase their wealth by stealing funds, nevertheless darknet activities, scams and ransomware also play a role. The report notes:
“Two things stand out most: The first is the huge increase in criminal balances in 2021 – at year’s end, criminals held $11 billion worth of funds with known illicit sources, compared to just $3 billion at the end of 2020. The second is how much stolen funds dominate.
As of the end of 2021, stolen funds account for 93% of all criminal balances at $9.8 billion. Darknet market funds are next at $448 million, followed by scams at $192 million, fraud shops at $66 million, and ransomware at $30 million.”
Accounting for almost 4% of whale crypto holdings, criminal whales hold over $25 billion in crypto:
“Overall, Chainalysis has identified 4,068 criminal whales holding over $25 billion worth of cryptocurrency. Criminal whales represent 3.7% of all cryptocurrency whales – that is, private wallets holding over $1 million worth of cryptocurrency.”
Furthermore, the research highlights the speed with which these entities operate and liquidate their assets, especially when ransomware is involved.
“What really stands out is how much holding times have decreased across the board, as the 2021 average holding times are at least 75% shorter than the all-time figures in all categories.
Ransomware operators, in particular, exemplify this trend, as they now hold funds on average for just 65 days before liquidating. This may be a response to the mounting law enforcement pressure ransomware attackers face.”
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Source: igaming
