New York analytics company Chainalysis recently reported that stolen money only accounts for 8.1 percent of all funds channeled to cryptocurrency mixers, with the majority using exchanges to maintain their privacy.
The deduction was made at Chainalysis’ recent webinar. It was disclosed during the online seminar that most of the money sent to cryptocurrency tumblers or mixing services came from exchange platforms. This indicated that the majority of funds were mainly used for privacy issues and not for illegal activities.
The blockchain analytics company conducted its latest webinar on August 14. Titled “Cryptocurrency Typologies: What You Should Know About Who’s Who on the Blockchains,” it talked about a sizeable amount of risk typologies in the cryptocurrency industry, like authorized crypto addresses, darknet markets, terrorist funding, scams, stolen funds, and more.
In their webinar, Chainalysis characterized crypto mixers as software or websites used for concealing the source of funds. These sites reportedly don’t require any Know Your Customer processes. They’re usually controlled centrally and operate on both Clearnet and darknet.
Chainalysis identified mixes as among the high-risk typologies. It also claimed that about 40% of all assets on cryptocurrency tumblers come from exchanges while around 2.7% are from the darknet.
A big fraction of earnings on these mixers is characterized by funds coming from other mixing companies.
Hanna Curtis, Chainalysis’ lead product manager, said it’s widely believed that this adds an additional layer of concealment. She also stated that while stolen tokens only represent eight percent of the currency passing through mixers, they’re still the main destination of illegally obtained crypto.