Summary
Chainalysis reported that $22.2 billion was laundered through crypto in 2023, down from $31.5 billion the previous year. The decrease was more significant than the drop in transaction volumes, indicating other factors may have contributed to the decline. Only about 1% of all money laundering is done through crypto, with the total value of illicit funds laundered estimated at $2 trillion annually.
Key Points
1. Chainalysis reported that $22.2 billion was laundered via crypto in 2023, a decrease from $31.5 billion the year before.
2. The drop in laundered funds was steeper than the decrease in transaction volumes, indicating that factors beyond market downturns may have contributed to the reduction in illicit activity.
3. Only about 1% of all money laundering is done using cryptocurrency, with the total value of all illicit funds laundered estimated to be around $2 trillion annually according to Deloitte’s June 2023 report.