Cryptocurrency-related crime fell significantly in 2020: Chainalysis

Cryptocurrency-related crime fell significantly in 2020, according to the data from Chainalysis.

In 2019, criminal activity represented 2.1% of all cryptocurrency transaction volume or roughly $21.4 billion worth of transfers. In 2020, the criminal share of all cryptocurrency activity fell to just 0.34% or $10.0 billion in transaction volume.

According to the report released today, One reason the percentage of criminal activity fell in 2020 is that overall crypto-related economic activity nearly tripled between 2019 and 2020. However, analytics firm notes that there could be unreported, unknown ransomware attacks still unaccounted. Therefore, we should expect 2020’s reported criminal activity numbers to rise over time.

For instance, in the last year’s report, Chainalysis reported 2019’s criminal share of cryptocurrency to be around 1.1%. However, the numbers got changed once more addresses associated with criminal activity in 2019 were identified in 2020. Most of those addresses were related to the PlusToken multibillion Ponzi scheme which came to light in 2020.

Regardless, cryptocurrency-related crime still remains a small part (less than 1%) of the overall crypto economy. In comparison, the estimated amount of real-world fiat money laundered globally in one year is 2−5 percent of the global GDP, or in the range of US$800 billion to US$2 trillion.