Bitcoin Illicit Flow Drops Remarkably With Drop in Asset Value

Illicit BTC flow

The number of illicit transactions made with Bitcoin have dropped remarkably in the past few days. This is per data available at Chainalysis, the market intel platform and seen on Monday, June 20. It shows that Bitcoin use for illicit funding activities dropped to new lows since the price of Bitcoin dropped to new lows.

The flow in illicit bitcoins chart shows that the use of BTC for illegal activities has not risen above the 1% mark since April 6. On April 5, the flow recorded was 1.42%. Since then, the highest value for illicit funding using  BTC is 0.52%. On June 16, the illicit flow of bitcoins actually dropped to 0, the first time in many months. From June 13, the maximum flow recorded is 0.01%.

Illicit BTC chart

Highest Flow of Illicit BTC Since January

Since the beginning of 2022, the largest flow of illicit BTC was recorded on  February 1, when transactions constituted 29.78% of all Bitcoin volumes.

On a 7-days chart, the flow of illicit bitcoins is an average of 0.01%. On the 30-days chart, the flow is 0.05%. It records an average of 0.19 on the 90-days chart and an average of 0.5% on the 180-days chart.

Illicit BTC Funds Pending Laundering

Illicit funds held by criminal gangs are a pointer to the scale of money laundering expected in the future. Operations such as darknet marketplaces, scams and hacked coins are the main sources of these funds.

Those held in addresses linked to the dark web are 334,464 BTC. Funds held by wallets flagged for scams are 52,314 BT. Those stolen by malicious players such as hackers are 106,827 BTC, while those held by wallets associated with other illicit activities are 32,623 BTC.

Moved Illicit Funds

Those funds from illicit activities that have been moved from their wallets pass though obfuscation. In the last 7 days, $2.4 million BTC from the darknet has been placed in legitimate services pending obfuscation. $184,190 from the dark web services are in mixers, while $480,107 are in other services.

$3 million in funds made from scams have been moved to exchanges in the past week. $1,335 of the funds from scams were moved to exchanges, while $259,865 worth of BTC were moved to other services from Bitcoin scams. $196,191 has been stolen from exchanges in the past week. Stolen funds in mixers are $14,867, while $21,372 of stolen funds are in other laundering services.

$737,945 in bitcoins have been moved from other illicit activities to exchanges. $96,674 in BTC were moved from other illicit activities to mixers, while $1.1 million were moved to other services.


Author: Kamma

Kamma is passionate about the prospects of blockchain and the freedom cryptocurrencies afford people across borders. He holds small amounts of bitcoin and tether.

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