The survey found that 270 service deposit addresses drive 55% of cryptocurrency money laundering

The following is the The survey found that 270 service deposit addresses drive 55% of cryptocurrency money laundering recommended by And this article belongs to the classification: Blockchain, Bitcoin.

According to foreign media reports, money laundering is the key to cryptocurrency crimes. The main goal of cybercriminals who steal cryptocurrency or accept payment as illegal goods is to confuse their sources of funds and convert cryptocurrency into cash so that it can be used or deposited in the bank. Of course, due to the efforts of law enforcement departments and legal professionals from all over the world, cyber criminals can not simply send their illegally obtained cryptocurrency to the exchange and cash it like ordinary users.

Instead, they need to rely on a very small number of service providers to liquidate their encryption assets. Some of these providers specialize in money laundering services, while others are only large cryptocurrency services and money services companies (MSBS), but their compliance procedures are relatively lax. By tracking these money laundering service providers, law enforcement officers can significantly weaken the ability of cybercriminals to convert cryptocurrency into cash, thereby reducing the motivation of cybercriminals to use cryptocurrency. Who are these money laundering service providers? First, look at the services that have been funded through criminal means over the past few years.

Historically, mainstream exchanges have been the main destination for illegal cryptocurrencies, which will remain unchanged in 2020. In fact, the share of all illegal cryptocurrencies acquired by exchanges will increase slightly in 2020. In addition, a large number of illegal addresses have been transferred to services classified as “high-risk” – including high-risk exchanges, gambling platforms, mixers and services headquartered in high-risk jurisdictions. Interesting trends emerge when looking at specific risk services for obtaining funds from different types of cryptocurrency based crimes.

The most popular high-risk service category of money laundering is very similar in each crime category, and fraud accounts for the largest proportion. Compared with other cybercriminals, fraudsters are more likely to transfer money to gambling platforms – a trend that began in 2020 – and services headquartered in high-risk jurisdictions.

There are also interesting trends when looking at money laundering from a geographical perspective.

The following countries receive the highest amount of cryptocurrency from illegal addresses, broken down by the location of the users of the services receiving the funds:



South Africa

United Kingdom


the republic of korea




However, when we investigate the geographical destination of funds by crime category, we will find some rules. For example, Russia has gained a considerable share from the dark net market fund, which is largely due to Hydra. Hydra is the world’s largest revenue dark network market, specializing in Russia and other Russian speaking countries in Eastern Europe.

It is understood that cryptocurrency sent from illegal addresses is often only used by a few companies. The five service organizations with the largest inflow of illegal funds account for 55% of all the illegal addresses. It is worth noting that addresses related to extortion software account for the highest share of sending activities concentrated in the top five services, reaching 78% in 2020.

As for money laundering, it is more concentrated in the deposit address level. In fact, data show that in 2020, only 1867 deposit addresses received 75% of the cryptocurrency value from illegal addresses. The team with 270 deposit addresses received 55%. In terms of original value rather than percentage, these 270 addresses received a total of $1.3 billion worth of illegal cryptocurrency in 2020, while only 24 smaller groups received more than $500 million worth of illegal cryptocurrency in 2020. This situation is more prominent in 2019.

The increasing concentration of deposit addresses for receiving illegal cryptocurrency reflects the increasing dependence of cybercriminals on a small group of off-site brokers and other nested services specializing in money laundering. In addition, an interesting trend is that while they may, individually or jointly, contribute to a large amount of money laundering, legitimate activities also account for a large part of the total transaction volume of many deposit addresses, especially those that do not receive $25 million in cryptocurrency from illegal addresses. In fact, illegal addresses account for less than 10% of the total amount of cryptocurrency received by these addresses, even less than the $10 million mark. This suggests that the money laundering promoted by these addresses may be unintentional and due to defects in the compliance procedures that control their nested services.

Overall, the data show that most of the illegal funds are transferred to service deposit addresses, of which money laundering accounts for a large proportion, and a small part of the funds flow into deposit addresses engaged in a large number of legal transactions, which may prevent illegal activities from being discovered, thus strengthening the need for compliance professionals and investigators to strictly evaluate all deposit addresses – especially the deposit addresses of nested services.

Google Trends: data show that the search volume of “buy bitcoin with credit card” has reached an all-time high? Cambridge University: the power consumption for bitcoin mining in 2019 exceeds the national power consumption of Switzerland. Aurora big data: in 2018, the number of virtual currency app users exceeds 7.5 million juniper Bank of Canada: 58% of Canadians hold bitcoin for investment purposes. Market value of bitcoin evaporated $44 billion in January 2018. Surveymonkey: survey shows that 71% of bitcoin owners are male. Credit Suisse: data shows that 4% of address masters 97% of bitcoin. Morgan Stanley: it is estimated that the total electricity consumption of global digital currency mining will exceed that of Argentina in 2018 Five forecasts of digital currency in 2018: IPO is coming coinmarketcap: reborn’s market value reaches US $86.3 billion, super Ethereum becomes the second largest cryptocurrency, nearly 75% of Europe’s top economists believe that bitcoin is not a systemic financial risk

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