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Cryptowire Report: Insights on Crypto Illicit Transactions in 2023
TRM Labs data revealed a significant decrease in illicit crypto volumes in 2023 compared to the previous year. Here are some key findings from the report:
Key Trends in Crypto Illicit Transactions
- In 2023, illicit crypto volumes dropped by a third to $34.8 billion from $49.5 billion in 2022.
- TRON blockchain hosted 45% of all crypto frauds in 2023, up from 41% in 2022.
- Criminals handled over $34 billion worth of cryptocurrencies despite a 9% decrease in total illicit crypto funds from 2022-2023.
Blockchain Insights
The report highlighted the distribution of illicit crypto volume across different blockchains:
- TRON blockchain accounted for 45% of illicit crypto volume in 2023.
- Ethereum blockchain followed with 24%, while Bitcoin blockchain had 18%.
Stablecoin Analysis
Tether (USDT) stablecoin stood out in terms of illicit volume:
- USDT had the largest illicit volume at $19.3 billion in 2023.
- Approximately 1.63% of Tether volume was linked to illicit activity, compared to 0.05% of USDC.
Factors Behind TRON’s Popularity
Angela Ang, senior policy advisor at TRM, discussed why TRON blockchain might attract perpetrators:
- Low transaction fees and high speed make TRON an attractive option for illicit activities.
- The availability of stablecoins like USDT on TRON facilitates quick fund laundering.
Reduction in Crypto Crime in 2023
Despite the prominence of TRON in illicit transactions, 2023 witnessed a decline in overall illicit funds:
- Illicit funds decreased by 30% to $34.8 billion in 2023 from $49.5 billion in 2022.
- Sanctions volume linked to sanctioned entities dropped by 30% from $25.4 billion in 2022 to $16.2 billion in 2023.
- Crypto hacks and exploits saw a 50% reduction to $1.8 billion in 2023 from $3.7 billion in 2022.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
