13 August 2020
The Chainalysis reports state that one million Bitcoins are held by scammers, thieves, and Darknet markets where cryptocurrency exchanges play a crucial role.
These 1 million BTC are divided in 585,000 BTC in illicit markets, other 99,000 BTC are controlled by scams and stolen funds constitute another 205,000 BTC and all others hold an additional 3,000 BTC — a grand total of 892,000 BTC. Chainalysis reveals 0.32% of all current Bitcoin flows are corrupt by illicit activity.
Crypto exchanges stand in the first place when it comes to illicit Bitcoins. The recent Twitter hack caused the hackers to quickly move their newly acquired assets to the exchanges.
The scammers and thieves roughly hold 300,000 Bitcoins. Crypto exchange has now become very serious for their Know Your Customer and Anti-Money Laundering procedures. The KYC makes it difficult for cybercriminals to unload their illegal funds which also bodes well for the market as massive selloffs by the criminals could lead to a collapse in price.