Tether Emerges as The Most Used Stablecoin for Criminal Activity: Report
Highlights
- Tether was the most popular stablecoin for unlawful activity in the cryptocurrency space last year.
- The amount of money received by unofficial cryptocurrency addresses also decreased significantly in 2023.
- Contrary to general trends, two of the most well-known types of cryptocurrency crime—ransomware and darknet markets—saw an increase in revenue in 2023.
Tether has emerged as the leader in the pack of stablecoins to be the most used for illicit activities. According to a recent Bloomberg report, Tether was the most used stablecoin for alleged illegal activities last year. This comes against the backdrop of overall illegal activities using crypto falling.
Tether Was the Most Popular Stablecoin for Unlawful Activity
Bloomberg highlights that according to TRM Labs, Tether was the most popular stablecoin for unlawful activity in the cryptocurrency space last year, a time when the total amount of illegal transactions in the space decreased as more companies dealing in digital assets came under scrutiny. In 2023, the USDT token was associated with $19.3 billion of unlawful transactions, compared to $24.7 billion in the previous year, according to a report and email responses from TRM Labs, a blockchain analytics company.
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Crypto-Related Illegal Activities Topple in 2023
According to a Chainalysis report, after the controversies, explosions, and price drops of 2022, the Bitcoin market recovered in 2023. The amount of money received by unofficial cryptocurrency addresses also decreased significantly in 2023, reaching a total of $24.2 billion. Bitcoin is still the primary platform for some illegal cryptocurrency activities, such as ransomware extortion and darknet market sales. Issuers of stablecoins, however, have the right to freeze money if they learn of their illegal usage. Tether recently took this action with addresses connected to terrorism and conflict in Israel and Ukraine.
Ransomware Still a Threat
Contrary to general trends, two of the most well-known types of cryptocurrency crime—ransomware and darknet markets—saw an increase in revenue in 2023. After the steep drops we chronicled last year, the rise in ransomware revenue is disheartening. However, it does imply that ransomware attackers may have adapted to enterprises’ increased cybersecurity—a development we first noted this year.
The importance of transactions related to sanctions is perhaps the most evident pattern that becomes apparent when examining the amount of unlawful transactions. In 2023, the aggregate transaction volume of sanctioned entities and countries amounted to $14.9 billion, signifying 61.5% of the total unlawful transaction volume that was assessed during that year.
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