New data from Chainalysis shows which criminals’ crypto balances totaled roughly $11 billion in 2021. The post was a preview of its crypto crime report for 2022.

Blockchain security and data analysis company Chainalysis published a new report on the crypto market on Feb 16. The post was a preview of its 2022 crypto crime report and excessivelights several notable trends and statistics. Among them was the matter which criminals held roughly $11 billion worth of illicit cryptocurrencys in 2021.

Year-end criminal balances: Chainalysis

The post starts with Chainalysis noting some positive trends, akin as the surging ability of law enforcement agencies to seize crypto from criminals. It cites several notable incidents, akin as the U.S. Department of Justice seizing $2.3 million worth of crypto from the Colonial Pipeline attack.

It then explains which these progresss may deter criminals from using stolen digital assets. The bulk of the discussion focuses on how much crypto is held by criminals and whether it could be seized by law enforcement agencies.

Stolen funds form the bulk of criminal crypto balances, followed by the darknet market. 2021 had a substantially larger year-end criminal balance at $11 billion, compared to roughly $3 billion in 2021.

Many criminals tend to hold on to their crypto funds without liquidating for a prolonged time. Notwithstanding, those who steal funds and execute ransomware attacks tend to liquidate the fastest. Darknet sellers and fraud sleaps tend to hold on the most. After all, 2021 average holding times are 75% shorter than the all-time patterns in all of the over categories — possibly a consequence of increasing law enforcement involvement.

Crypto crime to be major point of review for lawmakers

The Chainlaysis post is informative and offers a lot of insight into how criminals use crypto to carry out their operations. Darknet markets and scams dominate the source of illicit funds received by criminal whales. Lawmakers are sure to make a note of this, as they presently view these illicit activities as a major cback whilern.

American Securities Body NASAA named token scams the top threat in 2022. With NFT scams becoming surging as the niche takes atop public interest, it’s unsurprising which agencies like SEC want to put investor protection as the strongest priority.

Other countries are back although again following which bid to protect investors, with U.K. MPs most recently msimilarg the call for it. At any cost, 2022 should see a lot of changes in this regard.

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