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A report from blockchain analytics company, Chainalysis has revealed a worrying trend in money laundering through cryptos as a whopping $22.2 billion was transferred into cryptocurrencies by illicit addresses in 2023.&nbsp; 
According to the report tagged “2024 Crypto Crime Money Laundering <a href="https://www.chainalysis.com/blog/2024-crypto-money-laundering/" target="_blank" rel="noopener">Report</a>,” this was a significant decrease from the $31.5 billion laundered in 2022 but it still shows that there is work to be done in the industry.&nbsp; 
Notably, cryptocurrencies have introduced a new frontier for money laundering, challenging the traditional methods used to disguise the illegal origins of funds.&nbsp; 
At the heart of this challenge is blockchain technology, which, with its transparent ledger, makes every transaction visible to the public. Despite this transparency, criminals creatively attempt to obfuscate the trace of their funds, aiming to convert their illicitly obtained cryptocurrencies into fiat currency undetected. 
One of the reasons often cited for the wide crackdown on cryptocurrencies is its usage for illicit transactions. For instance, the Nigerian authorities have recently implemented measures against cryptocurrency exchanges to prevent what they see as financial market manipulation and money laundering.&nbsp; 
Related post: 
<a href="https://technext24.com/2024/02/22/naira-authorities-ban-crypto-exchanges/">Naira free fall: Nigerian authorities finally ban access to crypto exchanges</a> 
However, further research shows that even though the amount laundered through cryptocurrencies is high, it has still not matched the figures of illicit money movement through cash. 
<h4 id="more-on-the-chainalysis-money-laundering-report" class="wp-block-heading">More on the Chainalysis money laundering report&nbsp;</h4> 
Chainalysis’s updated <a href="https://www.chainalysis.com/blog/2024-crypto-money-laundering/" target="_blank" rel="noopener">findings</a> revealed that illicit addresses transferred $22.2 billion of cryptocurrency to various services, a notable reduction from $31.5 billion in 2022.&nbsp; 
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Chainalysis said this decline in cryptocurrency laundering can be attributed to multiple factors, with a significant impact stemming from the massive <a href="https://www.reuters.com/world/us/us-treasurys-financial-crimes-unit-proposes-cracking-down-cryptocurrency-mixers-2023-10-19/" target="_blank" rel="noopener">crackdown</a> on crypto mixers by the United States government. 
Crypto mixers are known for blending illicit funds to obscure their origins. These services have recently faced heightened prosecution, significantly curtailing their operations in the laundering ecosystem. 
In August 2022, Tornado Cash was shut down followed by the crackdown of Sinbad by the United States last November. These crackdowns have significantly impacted cryptocurrency launderers reliant on mixers to disguise the origins of illicit funds.&nbsp; 
Despite the efforts to disrupt cryptocurrency laundering and the closure of Sinbad, the Chainalysis report said Lazarus Group, a North Korean syndicate notorious for hacks, has adopted, and since January 2024, been receiving funds via YoMix. 
YoMix’s activities surged fivefold throughout 2023, with about one-third of its inflows traced back to wallets linked to cryptocurrency hacks, per Chainalysis. This underscores cybercriminals’ persistent adaptability in response to regulatory pressures. 
<h4 id="report-says-cash-is-used-more-than-crypto-for-money-laundering" class="wp-block-heading">Report says cash is used more than crypto for money laundering&nbsp;</h4> 
Despite the significant figures being laundered through crypto, research still shows that cash, not cryptocurrencies, remains the go-to instrument for money laundering for criminals and organisations. 
Read also: 
<a href="https://technext24.com/2024/02/22/south-africa-targets-blockchain-budget/">South Africa targets stablecoin and blockchain use cases in 2024 budget review</a> 
According to a detailed risk assessment <a href="https://home.treasury.gov/news/press-releases/jy2080" target="_blank" rel="noopener">report</a> delving into money laundering, terrorist financing and proliferation financing from the United States Treasury Department earlier this month, criminals and transnational criminal organisations continue to use cash.&nbsp; 
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The Treasury highlights the anonymity, stability and ubiquity of cash as a means of payment as a primary reason why it remains the preferred method of laundering illicit proceeds. 
“Criminals use cash-based money laundering strategies in significant part because cash offers anonymity. They commonly use U.S. currency due to its wide acceptance and stability,” the Treasury Department says. 
Additionally, the report highlights that bulk cash smuggling involving the transport of United States dollar banknotes remains a popular method to launder illicit proceeds inside and outside the country. 
While the Treasury concedes that the use of virtual assets for money laundering is far below the use of fiat currency and other conventional methods, cryptocurrencies are still being misused in cases involving ransomware, scams, drug trafficking, human trafficking and other illicit activities, it said.

Over $22bn was laundered through cryptos in 2023, but that figure is still far below cash- Chainalysis Report

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