Crypto Mixing Operations Attained Highest In 2022: Chainalysis Report

  • Crypto mixing services, as reported, provide a platform for criminals to obscure their ill transactions.

As per emerging reports, crypto mixing services have witnessed an upsurge in usage levels since the beginning of 2022.  A report by Chainalysis, a blockchain analysis outfit, confirmed this development on Thursday. Reportedly, the number of crypto assets relayed via mixing services in 2022 skyrocketed to its highest high.

Crypto Mixing Services Close Up

Over time, the crypto mixing services have been greeted with a series of criticisms after allegedly availing a ground for exploiters to pilfer virtual assets. According to the Chainalysis Thursday report, about 10 percent of all pilfered crypto assets are usually related to mixers. Additionally, these mixing services, as reported, always avail a platform for these criminals to obscure their ill profits.

Notably, the report indicated that the monthly average of cryptocurrencies related to mixing services attained its highest high last April.  This all-time high, as revealed, amounted to about $51.8 million. 

Similarly, the aggregate amount transferred to crypto mixers within Q2 of 2022 stands at $600 million, the report added. However, it claimed most of the transferred assets manifested from already sanctioned institutions intending to hide their crypto revenues and cyber-criminals.

Furthermore, the report specifically called out a North Korean Hacking Group, Lazarus, and an already sanctioned firm, identified as the Russian Darknet market, Hydra. It claims the activities of the duo as well as other hacking and sanctioned firms account for about 80 percent of the aggregate amount of crypto assets related to mixers within 2022.

 As for Lazarus, the report indicted the hacking team of pilfering over $1 billion worth of cryptocurrencies within 2022. According to the reports, all the siphoned funds by the group were sent to the crypto mixer. 

Also, other funds which form the 80 percent illicit asset in mixers come from different exploitations and security breaches, among others, the report averred.

Worth noting that the rise in crypto mixers has continued to attract numerous legal questions. No doubt that scammers and sanctioned firms have continued to take advantage of the crypto mixing services.

Recently, the author of Financial Crimes, Jeffrey Robinson, called on authorities to illegalize the usage of crypto mixers. Robinson submitted that the technology is an enabler of illicit activities, particularly money laundering. However, the CTC, in a report, remarked that the patronage of crypto mixing services for money laundering and terrorism-related activities remains “relatively limited.”

Rebecca Davidson Verified

Rebecca is a Senior Staff Writer at BitcoinWisdom, working hard to bring you the latest breaking news in the cryptocurrency market. In the words of Elon Musk “Buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.”

Latest News