The vast majority ( 72 %) of illicit funds were sent to just five off-ramping services as criminals sought to convert illegal crypto earnings into fiat currencies . hining a spotlight on the laundering

S of cryptocurrencies ,

Chainalysis has revealed that such activity fell sharply , by nearly 30 % last year . The Blockchain data company ’ s researchers have found that in 2023 , cryptocriminals managed to launder just US $ 22.2 billion worth of illicit earnings , compared to the all-time high of US $ 31.5 billion the previous year .

By tracking the flow of funds across Blockchains , Chainalysis also uncovered that centralised exchanges remain the primary means of off-ramping ( converting cryptocurrencies into traditional fiat currencies ), serving as the destination for 62 % of all funds leaving illicit wallets .

“ The good news is that centralised exchanges offer opportunities to freeze and seize crypto assets associated with illicit activities . Thanks to increased investments in compliance , including continued implementation of stringent KYC ( know your customer ) and AML ( antimoney laundering ) measures , exchanges and law enforcement agencies can prevent bad actors from cashing out their illgotten gains ,” said Kim Grauer , Director of Research at Chainalysis .

Crypto-related money laundering is also generally concentrated among a relatively limited number of exchanges . In 2023 , the large majority ( 72 %) of illicit funds sent to all off-ramping services went to just five services , up from 69 % in the previous year .

That being said , an obfuscation tactic that is being increasingly employed by cryptocriminals is the diffusion of illicit funds across a greater number of deposit addresses ( akin to bank accounts in traditional financial systems ) at centralised www . intelligentfin . tech

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