TRM Labs' latest research sheds light on the landscape of illicit cryptocurrency transactions in 2023, revealing that the Tron blockchain accounted for a staggering 45% of all scamming activities. This marks a significant increase of 41% compared to the previous year, highlighting Tron's prominent role in the digital currency underworld.
TRM Labs Analysis Reveals Tron's Role in Illicit Transactions, Ethereum and Bitcoin Follow Suit
Following Tron, Ethereum and Bitcoin accounted for 24% and 18% of illicit transactions, respectively. TRM Labs' analysis underscores the substantial market for illicit transactions on the Tron blockchain, affirming its position in facilitating illegal activities within the crypto space.
Research Exposes $34 Billion in Illicit Crypto Transfers, Tether Dominates Illegal Activity
The research, titled "The Illicit Crypto Economy," highlights the transfer of over $34 billion in criminal-externalized cryptocurrencies. Despite a 9% decrease in total illicit crypto volumes, concerns persist regarding the use of cryptocurrencies in fraudulent activities, necessitating stricter supervision and controls in crypto trading.
Stablecoins, particularly Tether (USDT), play a central role in illegal cryptocurrency activities. Tether accounted for the largest volume of illicit transactions in 2023, totaling $19.3 billion. The prevalence of USDT on the Tron blockchain, particularly in entities involved in terrorism financing, underscores the challenges in monitoring and controlling digital currency flows.
Senior Policy Advisor Angela Ang Highlights Tron's Role in Illicit Transactions, Calls for Enhanced Security Measures
Angela Ang, a senior policy advisor at TRM, attributes Tron's attractiveness to its low transaction fees and high speed, facilitating cost-effective laundering of funds. The availability of USDT on Tron further enhances its popularity for illicit purposes, emphasizing the need for enhanced security measures and regulatory frameworks.
Despite Tron's dominance in illegal transactions, the total amount of illicit money in cryptocurrencies decreased significantly in 2023. Factors contributing to this decline include businesses becoming more cautious, increased public awareness of scams, and security improvements in cryptocurrencies.
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