A report compiled by the leading cryptocurrency intelligence firm, CipherTrace, gives details about the current state of major crypto-based criminal activity. Main highlights of this report include the increase in cross-border crypto payments, Iran’s growing interest in cryptocurrency as a means to sidestep sanctions, and the $356 million in cryptocurrency thefts in that quarter alone. These findings are an attempt to discover common trends in order to assist in developing future legislation against such corruptions.
CipherTrace is a well-known and highly-developed intelligence operation that works to build solutions for monitoring and regulating crypto-based fraud. CipherTrace is often used by leading exchanges, banks, investigators, regulators, and digital asset businesses in order to trace transactions and display compliance with current anti-money laundering regulations in hopes of building trust in the cryptocurrency economy. Their quarterly reports have become a vital data resource when it comes to monitoring and the legislation of crypto transitions.
CipherTrace’s report for this quarter shows a concerning trend involving cross-border crypto payments becoming untraceable as they leave U.S. exchanges after entering offshore locations. In twelve months the crypto transfers from the U.S. exchange to offshore exchanges grew 21 points or 46 percent when compared to the same period from two years before. These transactions fall out of U.S. awareness as they leave the exchange, making them blind spots that are highly difficult to monitor or regulate.