Crypto and money laundering: What you need to know

Quick Summary:

Before being converted into fiat, the cryptocurrency is processed through intermediary services like mixers, bridges or decentralized finance (DeFi) protocols to obscure its origins. Despite compliance measures, centralized exchanges (CEXs) handled almost half of these funds.In 2022, nearly $23.8 billion in illicit cryptocurrency was exchanged, a 68% surge from 2021. Decentralized exchanges (DEXs)DEXs operate on a decentralized, peer-to-peer basis, meaning transactions occur directly between users using smart contracts rather than through a CEX.

In 2023, crypto wallets linked to unlawful activities transferred $22.2 billion, while in 2022, this figure stood at $31.5 billion.  Stages of crypto money laundering Crypto money laundering follows a structured process designed to hide the source of illicit funds.

There has been a sharp rise in funds transferred to crosschain bridges from addresses linked to stolen assets. Cybercriminal organizations with advanced laundering techniques, such as North Korean hacking groups like Lazarus Group, leverage a diverse range of crypto services.

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Article Details

Author / Journalist: Cointelegraph by Dilip Kumar Patairya

Category: Crypto

Markets: United StatesCanadaJapanNorth KoreaSingaporeTaiwan

Topics: AML Money laundering Crypto

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2025-03-18 @ 08:35:00 (16 hours ago)

News Timezone: GMT -5:00

News Source URL: cointelegraph.com

Language: English

Article Length: 1778 words

Reading Time: 10 minutes read

Sentences: 97 lines

Sentence Length: 19 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Coin Telegraph

News ID: 27142067

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About Coin Telegraph

Main Topics: Crypto

Official Website: cointelegraph.com

Update Frequency: 421 posts per day

Year Established: 2013

Headquarters: United States

News Last Updated: 8 hours ago

Coverage Areas: United States

Ownership: Independent Company

Publication Timezone: GMT -5:00

Content Availability: Worldwide

News Language: English

RSS Feed: Available (XML)

API Access: Available (JSON, REST)

Website Security: Secure (HTTPS)

Publisher ID: #11

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