Bitcoin Mixers See Rapid Growth From the Darknet Markets: BitFury Crystal Blockchain Report
The latest crypto activity report, published by Crystal blockchain, suggests a significant surge in the use of bitcoin mixers on the darknet between the last quarter of 2019 and the first quarter of 2020. The rise is a whopping 294% which suggests the rapid adoption and use of mixing tools by these darknet entities.
The report also saw a similar trend for the US Dollar which increased from $3m in Q1 2019 to $67m in Q1 2020. The report read:
“The amount of bitcoin sent to mixers by darknet entities rose significantly this year — from 790 total bitcoin in Q1 2019 to 7,946 bitcoin in Q1 2020. The same growth was also observed in USD — an increase from $3m in Q1 2019 to $67m in Q1 2020. This indicates a rapid adoption of crypto mixing services by darknet entities.”
Some of the key findings of the report include:
The amount of bitcoin (measured in BTC) transferred between darknet entities and other entity types declined in Q1 2020 compared to the same period one year ago; however, the value of the amount of bitcoin transferred (measured in USD) grew by 65%.
This is not just due to the increase in the USD value of bitcoin from 2019 to 2020. The amount of money being transferred by darknet entities is still growing, and they are continuing to use bitcoin as a medium of transport. The mass adoption of bitcoin, as well as its ease of use and popularity, is a contributing factor as well.
In Q1 2020, there was a rapid growth in the amount of Bitcoin sent from darknet entities to mixers. During that same period, the amount sent in Bitcoin to exchanges that required verification was reduced — indicating a reduction in the use of cryptocurrency exchanges for criminal and darknet activities in favor of more anonymous services like mixers.
The share of bitcoin sent from one darknet entity to another also grew in Q1 2020. It is possible that darknet users are trying to hide their bitcoin flow inside of the darknet, avoiding the detection of their activities. This also encourages darknet services to cooperate and grow their revenue internally.
The report concluded that even though the amount of bitcoin sent to darknet has decreased since 2017, the value of bitcoin in USD has increased significantly. Also, the amount of bitcoin being sent among darknet members have also seen a rise. While the use of privacy tools by these darknet entities was no secret, now with the help of many analytical tools and service providers, it is easier to track even the masked transactions.