Chainalysis, Christine Lagarde, criminal use, crypto crime, crypto transactions, Cryptocurrency, cryptocurrency crime, Darknet Markets, Janet Yellen, ransomware

A study by blockchain analytics firm Chainalysis finds that cryptocurrency-related crime has fallen significantly. The criminal share of all crypto activity fell to just 0.34% in 2020. This contradicts recent statements by U.S. Treasury Secretary nominee Janet Yellen and ECB President Christine Lagarde that cryptocurrencies are mostly used for illicit financing.

Crypto Crime Plummeted in 2020

Chainalysis shared some findings from its 2021 Crypto Crime Report this week. While acknowledging that “cryptocurrency remains appealing for criminals as well due primarily to its pseudonymous nature and the ease with which it allows users to send funds anywhere in the world instantly,†the blockchain analytics firm detailed:

In comparison, the firm explained that in 2019, “criminal activity represented 2.1% of all cryptocurrency transaction volume, or roughly $21.4 billion worth of transfers.†Last year, “One reason the percentage of criminal activity fell is because overall economic activity nearly tripled between 2019 and 2020,†the company noted.

Chainalysis, Christine Lagarde, criminal use, crypto crime, crypto transactions, Cryptocurrency, cryptocurrency crime, Darknet Markets, Janet Yellen, ransomware
A chart showing the total crypto value sent and received by criminal entities and the criminal share of all crypto activity. Source: Chainalysis

Chainalysis noted that darknet markets were the second-largest crime category. It accounted for $1.7 billion worth of cryptocurrency activity, which was an increase from $1.3 billion in the previous year. Ransomware accounted for just 7% of all funds received by criminal addresses, which was just under $350 million worth of cryptocurrency. While small, ransomware saw a 311% jump over 2019.

The findings by Chainalysis contradict the recent statements made by Joe Biden’s pick for the U.S. Treasury Secretary, Janet Yellen, and ECB President Christine Lagarde. Yellen said Tuesday that many cryptocurrencies are used “mainly for illicit financing.†Meanwhile, Lagarde said last week that bitcoin “has conducted some funny business†and some “totally reprehensible money laundering activity.â€

Several people in the crypto industry have pointed out the error of their statements, including a well-known economist who called Lagarde’s statement “outrageous.†He emphasized, “we all know that the vast majority of money laundering globally is conducted in fiat currencies, particularly in U.S. dollars and euros.â€

What do you think about the falling rate of crypto crime? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

RELATED NEWS

20 Bitcoin Block Rewards from 2010 Moved Today, Mystery Miner Spent $400 Million in BTC Since Black Thursday

On Saturday, February 27, 2021, news.Bitcoin.com reported on the great number of 2010 and 2011 block rewards being spent this year. In that report, it was said that the mysterious whale entity we’ve been hunting “did not move a major string of bitcoin’s†since January 25. Following the publishing of that study, on Sunday, the […]

Xem chi tiết: 20 Bitcoin Block Rewards from 2010 Moved Today, Mystery Miner Spent $400 Million in BTC Since Black Thursday

Coinbase Files for IPO via Direct Listing on Nasdaq — Valuation Soars Above $100 Billion

Cryptocurrency exchange Coinbase has filed for an initial public offering with the U.S. Securities and Exchange Commission (SEC). The company has chosen the direct listing route and has applied for its shares to be listed on Nasdaq. Coinbase filed Form S-1 Registration Statement for its IPO with the SEC on Thursday. The company revealed in […]

Xem chi tiết: Coinbase Files for IPO via Direct Listing on Nasdaq — Valuation Soars Above $100 Billion

Nigerian Vice President Yemi Osinbajo Contradicts Central Bank, Says Cryptocurrencies Must Regulated and Not Prohibited

In an apparent rebuke of the Central Bank of Nigeria (CBN), the Vice President of Nigeria Yemi Osinbajo says the country’s monetary authorities must consider regulating crypto assets. He adds that instead of “killing the goose that might lay the golden eggâ€, Nigerian monetary authorities must consider providing a “robust regulatory regime†that addresses their […]

Xem chi tiết: Nigerian Vice President Yemi Osinbajo Contradicts Central Bank, Says Cryptocurrencies Must Regulated and Not Prohibited

Central Bank of Nigeria Governor Defends Decision to Exclude Crypto Players, Says the Order Is ‘in the Best Interests of Nigerians’

The governor of the Central Bank of Nigeria (CBN), Godwin Emefiele has defended the apex bank’s decision to exclude cryptocurrency transactions from the banking ecosystem. In his testimony before the Nigerian Senate, Emefiele claimed that the February 5 directive is “in the best interests of Nigerians.†Crypto Not Money Immediately following the announcement of the […]

Xem chi tiết: Central Bank of Nigeria Governor Defends Decision to Exclude Crypto Players, Says the Order Is ‘in the Best Interests of Nigerians’

Coinbase Files for IPO via Direct Listing on Nasdaq — Valuation Soars Above $100 Billion

Cryptocurrency exchange Coinbase has filed for an initial public offering with the U.S. Securities and Exchange Commission (SEC). The company has chosen the direct listing route and has applied for its shares to be listed on Nasdaq. Coinbase filed Form S-1 Registration Statement for its IPO with the SEC on Thursday. The company revealed in […]

Xem chi tiết: Coinbase Files for IPO via Direct Listing on Nasdaq — Valuation Soars Above $100 Billion

Janet Yellen Warns Bitcoin Is ‘Extremely Inefficient’ and ‘Highly Speculative’ as BTC Price Plunges

U.S. Treasury Secretary Janet Yellen has warned about the dangers of bitcoin as the price of the cryptocurrency took a nosedive. She sees bitcoin as a highly speculative asset and is worried about potential losses investors can suffer. Yellen also believes that bitcoin is not widely used as a transaction mechanism due to its inefficiency, […]

Xem chi tiết: Janet Yellen Warns Bitcoin Is ‘Extremely Inefficient’ and ‘Highly Speculative’ as BTC Price Plunges

Janet Yellen Warns Bitcoin Is ‘Extremely Inefficient’ and ‘Highly Speculative’ as BTC Price Plunges

U.S. Treasury Secretary Janet Yellen has warned about the dangers of bitcoin as the price of the cryptocurrency took a nosedive. She sees bitcoin as a highly speculative asset and is worried about potential losses investors can suffer. Yellen also believes that bitcoin is not widely used as a transaction mechanism due to its inefficiency, […]

Xem chi tiết: Janet Yellen Warns Bitcoin Is ‘Extremely Inefficient’ and ‘Highly Speculative’ as BTC Price Plunges

Binance Suspends Ethereum and ERC-20 Token Withdrawals Before Quickly Reversing Course

The rollercoaster-ride in cryptocurrency prices on Monday was accompanied by Binance’s fresh restrictions for ethereum and ERC-20 tokens. Ethereum Network Congestion Fingered as the Culprit for the Temporary Halt Through the official Binance Twitter account, one of the world’s largest cryptocurrency exchanges by volume, announced that it had “temporarily suspended withdrawals of $ETH and ethereum-based […]

Xem chi tiết: Binance Suspends Ethereum and ERC-20 Token Withdrawals Before Quickly Reversing Course

‘Bitcoin Is the Biggest Jailbreak in Human History,’ Says Philosopher Stefan Molyneux

Janet Yellen Stresses Importance of Crypto Regulation, Making Sure Bitcoin Is Not Used in Illicit Transactions

Bitcoin’s Watershed Moment- Crypto Asset Commands a $1 Trillion Market Capitalization

As Millions Drown in Today’s Poverty Trap, Macro Strategist Raoul Pal Says ‘Bitcoin Is a Life Raft’

Pionex Is a Crypto Exchange With Built-in Automated Trading Tools You Can Trust

Survey Finds Many Finance Managers Are Not Planning to Hold BTC— Volatility Cited as Key Concern

Blockchain.com Raises $120 Million in a Strategic Financing Round, Firm’s Institutional Arm Swells

Privacy Coin Verge Suffers Third 51% Attack, Analysis Shows 200 Days of XVG Transactions Erased

Other Articles