Crypto Laundering on Rise as Traditional Criminals Exploit Crypto Markets

Crypto Laundering on Rise as Traditional Criminals Exploit Crypto Markets

Laundering money through cryptocurrencies is on the rise, as traditional money launderers are starting to build large-scale infrastructure using crypto networks, according to Chainalysis research director Kim Grauer. "When we looked at all the transfers to exchanges in 2024, we saw a huge spike in transfer volumes under $10,000," Grauer said. "That's when a specific heuristic that our team of analysts came up with, which is, if you're just under $10,000 in a transfer to an exchange – we're not saying that's definitely money laundering – but it's a heuristic that traditional banks and financial institutions use to flag transactions all the time for further review." Grauer said that this trend is likely to continue as cryptocurrencies become more widely adopted and accepted. "As crypto becomes more mainstream, we're going to see more and more traditional money launderers using it," he said. "It's a way for them to move large amounts of money quickly and easily, and it's very difficult to track." This is a serious concern, as money laundering can be used to finance terrorism, drug trafficking, and other criminal activities. It is important for law enforcement and financial institutions to be aware of this trend and to take steps to prevent it.