Nearly 50% of all illicit volume occured on TRON in 2023, TRM Labs says

According to TRM Labs, an analytics team at a blockchain investigation company, approximately half of the illicit trading activity in 2023 occurred on the TRON network.

In a new study by TRM Labs named “The Illicit Crypto Economy,” it’s revealed that around 45% of all illicit cryptocurrency transactions in the previous year took place on the TRON blockchain network. This is an uptick from the 41% observed in the year prior. Ethereum and Bitcoin accounted for 24% and 18%, respectively, of such transactions. In simpler terms, the TRON blockchain was involved in about half of all questionable crypto deals last year, making it a significant hub for illicit activity within the cryptocurrency market.

Tether (USDT), a stablecoin managed by Tether Inc. and based in San Francisco, has been identified as having the most significant volume of funds linked to illegal activities according to TRM Labs. This currency has reportedly become preferred among entities involved in terrorist financing, with approximately $19 billion in illicit transactions. In comparison, USD Coin (USDC) has a much smaller amount of around $428.9 million in such transactions.

The count of distinct TRON addresses receiving Tether (USDT) in terror funding campaigns increased by 125%.

TRM Labs

Hackers linked to North Korea reportedly favor TRON as a go-to network for their illicit activities, such as swapping stolen crypto funds, primarily USDT. Subsequently, these laundered digital assets are converted into fiat money using high-volume OTC brokers, according to the firm’s observation. At present, TRON’s developers have yet to release an official statement regarding this discovery.

Although the numbers are large, TRM Labs observes a decrease in the amount of hacked and restricted funds. This reduction is believed to be due to increased action from governments and law enforcement bodies around the world.

Nearly 50% of all illicit volume occured on TRON in 2023, TRM Labs says

Tether has repeatedly made clear its focus on following anti-money laundering rules to prevent terrorism financing. In December 2023, the company emphasized its plans for customer identification procedures and regulatory compliance in a letter sent to members of the U.S. House Financial Services Committee and Senate Banking Committee.

The company behind USDT disclosed that the Internal Revenue Service (IRS), acting on behalf of the Financial Crimes Enforcement Network (FinCEN), conducted a comprehensive review of its KYC (Know Your Customer) program. Additionally, Tether revealed partnerships with several U.S. law enforcement agencies, including the Department of Justice, Secret Service, and FBI. These collaborations resulted in the freezing of multiple crypto wallets.

Read More

2024-03-28 15:02