Chainalysis: Under 10% Of Coins Used in Cryptocurrency Mixers are for Illicit Purposes

If blockchain analysis company Chainalysis is right, only a small fraction of the cryptocurrencies sent to and from crypto mixers are used for illicit purposes. According to the New York-based firm, illicit funds account for just 8.1% of the total amount of funds sent to crypto mixers.

In a recent webinar titled Cryptocurrency Typologies, the blockchain analytics firm suggested that users of mixing services take advantage of the option for privacy reasons. Many darknet users, on the other hand, send their coins directly from cryptocurrency exchanges.

According to Hanna Curtis the product data manager at Chainalysis, although the illicit funds originate from a small portion of all the mixing services users, a large fraction of the stolen coins ends up being mixed. Speaking to Cointelegraph he said:

“A lot of people are using mixers just for personal privacy, but we do know that a lot of illicit funds end up in mixers.”

Chainalysis believes that 8.1% of all mixed cryptocurrencies were stolen, while only 2.7% of cryptocurrencies had been used in darknet markets. As such, fewer than 1 in 11 cryptocurrencies sent to mixers could be identified as being used for illicit purposes. In addition, 1.9% of mixed coins come from gambling or betting sites, which may be illegal depending on the jurisdiction of users and sites.

By contrast, almost half of all mixed cryptocurrencies were shipped from exchange platforms. This includes 40% of traditional crypto exchanges and 7.7% of peer-to-peer exchanges. More than a quarter of the mixed cryptocurrencies came from other mixers.

While Chainalysis did not go into detail, centralized mixers appear to receive a higher proportion of coins used in illicit activities than “decentralized” mixers. For example, Bestmixer, a centralized mixer that was shut down by police in May 2019, received many cryptocurrencies for which the destination origin could be identified as illicit. The service mixed more than 27,000 cryptocurrencies worth about $200 million.

Chainalysis noted that decentralized mixers like Wasabi Wallet have experienced exponential growth this year. Where the wallet mixed about $90 million of Bitcoin by August 2019. In total, Wasabi Wallet mixed $250 million in Bitcoin in 2019, according to Chainalysis.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Joseph Kibe
Joseph Kibe
Joseph is a blockchain and cryptocurrency enthusiast, with a strong conviction that exposure of blockchain technology is for the good of the society. Fascinated by the massive potential of cryptocurrencies and the technology behind them – blockchain – Joseph spent lots of his time learning more about the industry, becoming a polished expert writer in the sector. He covers any cryptocurrency and blockchain related content.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,438FansLike
2,795FollowersFollow
4,190FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Chinese Developers to Use Telegram's Open-Sourced TON Blockchain To Launch Their Own Network

Chinese TON developers announce the launch of their variation of the TON blockchain after successive launches by TON Lab’s Free TON platform and...

JP Morgan Chase Set to Pay $2.5 Million in Crypto Class-Action Lawsuit for Overcharging

The largest bank in the United States, JP Morgan Chase has agreed to pay $2.5 million to settle a class-action lawsuit related to charging...

60% of Bitcoin Supply Not Moved in a Year, What Does it Say About the Next Bull Run?

May is coming to an end and bitcoin is looking to stay above $9,500, ending the month with about 8% returns. The market sentiments are...

E-Commerce Giant, Amazon, Patents Blockchain Authentication Of Accepted Consumer Products

The world-leading e-commerce platform, Amazon Technologies Inc., filed a patent on blockchain technology for proving the authenticity of consumer goods in its online marketplace....

Compound Roadmap to Full Decentralization to Begin with Issuance of COMP to Their Community

Compound will now issue COMP tokens to the users of their protocol in a bid to achieve full decentralization. They have released an...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today