Bitcoin experienced a surge in value in 2020, but transaction security remains a concern. Many users fall victim to compromised wallets used by darknet representatives, leading to sanctions on cryptocurrency exchanges. To mitigate risks, it's recommended to utilize security protocols and closely monitor all assets.
Cryptocurrencies stolen from cryptocurrency exchanges and used for illicit purposes are considered «dirty». These can be various coins. Cryptocurrency platforms attempt to track the actions of wrongdoers, but this is not always successful. The scale of crime varies across different sources. In 2020 alone, over 1.4 billion bitcoins passed through mixers in the darknet.
Analysts suggest that unofficial brokers largely manage to launder money, facilitating monetary transactions between sellers and buyers on cryptocurrency exchanges. Due to laundered coins, there is an increased risk of them ending up with law-abiding users. These users get blocked, preventing them from accessing their funds and conducting operations, thereby reducing the efficiency of cryptocurrency exchanges. Analysts claim that transfers are only possible to verified wallets on the whitelist.
Cryptocurrency Value
According to statistical information, mixer services processed bitcoins totaling over 1.4 billion dollars. This figure is almost five hundred dollars more than the previous year, as reported by the Crystal Blockchain platform. Other portals provide similar information.
In 2020, the value of Bitcoin increased by almost three hundred billion dollars. Darknet representatives took advantage of this to gain up to 1.6 billion dollars through transactions. Half a billion was sent through cryptocurrency exchanges, impacting ordinary users who do not engage in money laundering.
Results from the first quarter of 2020 differ from previous years' indicators. Over 45% of cryptocurrency coins were processed through platforms where verification is not required. Tracking financial operations and other user activities is challenging here. Exchanges adhering to all common rules processed up to 29% of such transactions compared to general information. Special services handled only one percent of requests from users who did not undergo verification.
Cryptocurrency Transfers
All procedures for transferring money through cryptocurrency exchanges were conducted without KYC support. These transactions account for up to 46% of the total amount of operations conducted this year. Only thirteen percent of funds were transferred through services requiring identity confirmation.
The number of mixers among all indicators does not exceed twenty percent, but this figure surpasses the analytical information from previous years for this period.
Total Value
The total value of bitcoins obtained through transfers in 2020 exceeds 273 billion dollars. Compared to similar indicators from the previous year, this figure doubled. The number of transfers through verified exchanges decreased to 109 million compared to the previous year. However, most users do not use mixers. Only 4.5% of users resort to such services.
Security
All trading platforms regularly monitor transactions to prevent dirty coins from reaching users' wallets. Algorithms are applied to trace currency involved in unlawful activities.
To confound existing services, wrongdoers use special platforms. In mixers, all transactions are split into several smaller ones. As a result, cryptocurrency passes through different cards, ATMs, and platforms. Often, these assets are sold at discounts to confuse trading platforms.
Dirty assets end up in the wallets of various users, obtained through regulated exchanges operating through security systems. Users purchase coins, receiving them as payment.
If such coins enter a wallet, it is considered compromised, blacklisted, and blocked from performing any actions. Subsequent re-verification is required, explaining the origin of all funds. Penalties for participating in money laundering may also be imposed. This prohibition is not yet in effect in all countries.
To reduce the number of transactions through mixers and secure wallets, it is recommended to use specialized services to verify the origin of cryptocurrencies. They help identify and trace dirty coins, and it is advisable to use assets only from reputable sources for reliability. Stay updated on FlyPay's blog for more insights into cryptocurrency security practices.
