Bitcoin no longer crypto of choice for illicit crypto activity!!

While fiat channels remain the dominant tool for criminal financing, Bitcoin appears to have fallen out of favor for criminals as far as cryptocurrencies go.

According to new research, fewer cybercriminals are turning to Bitcoin as their primary method of moving illicit funds, with bad actors opting to go back to fiat channels or choosing other cryptocurrencies.

Photo by David Peterson: https://www.pexels.com/photo/silver-bitcoin-on-log-4592283/

Digital asset compliance and risk management firm TRM Labs revealed that illicit finance volumes involving Bitcoin had fallen significantly over the past seven years, according to its “Illicit Crypto Ecosystem Report,” released on June 28.

TRM Labs said instead a new multichain era has led to a “qualitative leap” away from Bitcoin as a primary means of moving criminal proceeds. The firm also highlighted that cash and other forms of fiat-related finance remain the “default” means of criminal money movements.

“Indeed, cash and even older forms of finance such as hawala (transferring money without physically moving it) remain the default means by which illicit activity is financed and its proceeds are laundered.”
TRM Labs also noted that while illicit activity involving crypto has increased, “crypto did not invent these criminal forms."

The firm reported that around $2 billion in crypto was stolen through attacks on cross-chain bridges in 2022, but very little of that was Bitcoin.

Source : https://cointelegraph.com/news/bitcoin-btc-no-longer-favored-illicit-crypto-activity-trm-labs