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Chainalysis and the Wyoming's Division of Banking, the banking regulator responsible for the chartering and supervision of state banks, have teamed up to combat money laundering, sanctions violations, and other criminal activity that uses digital assets. Wyoming's watchdog will leverage Chainalysis solutions to verify the state banks' compliance with anti-money laundering, Bank Secrecy Act, know-your-customer and sanctions requirements. It will also employ Chainalysis tools to help federal and state law enforcement agencies conduct regular transaction testing and monitoring.

Chainanalysis has partnered with Paxful to create new compliance standards for P2P exchanges. Paxful will use Chainalysis KYT (Know Your Transaction) to monitor its platform's crypto transactions in real-time and Chainalysis Reactor to build investigations when it detects suspicious activity.

Chainalysis claims that terrorist groups' use of crypto-assets has been overstated. Some terrorist organizations do raise, store, and transfer funds using crypto-assets, but according to Chainalysis, terrorism financing is a very small portion of the already very small portion of crypto transaction volume that is illicit. Instead, terrorist organizations will likely continue to use traditional, fiat-based methods such as financial institutions, hawalas, and shell companies as their primary financing vehicles. Also, crypto-assets are not effective solutions to finance terrorism at scale due to blockchain technology's inherent transparency.

Algorand has linked up with Chainalysis to help bake regulatory compliance into their blockchains. Chainalysis will provide a know-your-transaction solution, allowing its foundation to monitor large volumes of on-chain activity for the native ALGO token and report any suspicious transactions to the authorities. It will not provide a comprehensive solution to "travel rule" compliance, but it will help Algorand pick out transactions that trigger the rule, as well as identifying relevant senders and receivers.

The U.S. Department of Justice arrested three individuals associated with the July 15 Twitter hack. The hack hijacked the accounts of some of Twitter's most prominent users and sent tweets promising followers who sent Bitcoin to a specific address that their contribution would be paid back double. Authorities said Friday that the attackers used three different Bitcoin wallets to collect their proceeds, receiving more than 400 deposits worth $117,457.58. Blockchain analysis firm Chainalysis played a key role in the investigation, bringing into question exactly how anonymous are bitcoin transactions. "If [the accused] had carried out these transactions in fiat currency, the investigation may have been more difficult, as the transactions wouldn't have left the same public footprint that Bitcoin transactions do." https://www.justice.gov/usao-ndca/pr/three-individuals-charged-alleged-roles-twitter-hack

Chainalysis reports that, despite the market downturn, illicit crypto transaction volume rose for the second consecutive year, hitting an all-time high of $20.1 billion, likely a lower bound estimate. The measure of illicit transaction volume is sure to grow over time as new addresses associated with illicit activity are identified, and the figure doesn't capture proceeds from non-crypto native crime (e.g. conventional drug trafficking involving cryptocurrency as a mode of payment). For example, in 2022 Chainalysis reported $14 billion in illicit activity in 2021, but that figure has now been raised to $18 billion, mostly due to the discovery of new crypto scams.

According to Chainalysis, illicit addresses sent nearly $23.8 billion worth of cryptocurrency in 2022, a 68.0% increase over 2021. As is usually the case, mainstream centralized exchanges were the biggest recipient of illicit cryptocurrency, taking in just under half of all funds sent from illicit addresses. More illicit funds were sent to DeFi protocols than ever before, a continuation of a trend that began in 2020.

Chainalysis says cross-chain bridges that allow transfer of assets between independent blockchains are among the highest risk protocols in the blockchain industry for scams and bad actors. Chainalysis in a new report estimates that $2 billion worth of cryptocurrency has been stolen from cross-chain bridges across 13 attacks so far this year, accounting for 69% of all stolen funds during that time. Cross-chain bridges were once considered the solution to interoperability between blockchains in the crypto industry, but as the protocols continue to seem vulnerable to hacks and attacks that view is beginning to change.

According to Chainalysis, global crypto adoption has leveled off in the last year after growing consistently since mid-2019. Emerging markets dominate the index. Out of the top 20 ranked countries, ten are lower middle income (:Vietnam, Philippines, Ukraine, India, Pakistan, Nigeria, Morocco, Nepal, Kenya, and Indonesia), eight are upper middle income (Brazil, Thailand, Russia, China, Turkey, Argentina, Colombia, and Ecuador) and two are high income (United States and United Kingdom).

ccording to blockchain security firm PeckShield, the amount of money netted from decentralized finance (DeFi) hacks in the first four months of 2022, $1.57 billion, has already surpassed the amount netted in all of 2021, $1.55 billion. Chainalysis found a similar trend, with the hacker haul in the first three months of 2022 exceeding a record set in the third quarter of 2021. The biggest hacks were Axie Infinity's Ronin bridge exploit ($650 million), the Wormhole network exploit ($320 million) and the Beanstalk Farms governance attack ($180 million). The biggest hacks of 2022 were carried out by attackers spotting vulnerabilities in smart contracts and protocols, especially in cross-chain bridges and flash loan protocols. According to Chainalysis, because blockchain code is typically public, hackers can view it easily to spot vulnerabilities and manipulate the protocol to exploit it.

According to Chainalysis, In 2023, illicit addresses sent $22.2 billion worth of cryptocurrency to services, versus the $31.5 billion sent in 2022. Some of this drop may be attributed to an overall decrease in crypto transaction volume. However, the drop in money laundering activity was steeper, at 29.5%, compared to the 14.9% drop in total transaction volume. However, there was a big increase in the volume of funds sent to cross-chain bridges from addresses associated with stolen funds, and a substantial increase in funds sent from ransomware to gambling platforms, and in funds sent to bridges from ransomware wallets.

Chainalysis says It's unrealistic and bad to expect crypto exchanges to send KYC information to recipient platforms with every transaction, in response to a draft FATF recommendation.

If Chainalysis is right, only a small fraction of coins sent to and from bitcoin mixers are used for illicit purposes.

Last year, more than $4.3 billion in digital currencies was stolen in various crypto scams, according to Chainalysis. The majority of the scams were linked to Ponzi schemes including the PlusToken and OneCoin scams.

Last year, more than $4.3 billion in digital currencies was stolen in various crypto scams, according to Chainalysis. The majority of the scams were linked to Ponzi schemes including the PlusToken and OneCoin scams.

While many retail investors sold their Bitcoin holdings either partially or fully, the crypto market has been dragged down by institutional or professional investors, according to data provided by Chainalysis.

Chainalysis reported that criminal activity represented 0.34% of all 2020 crypto-asset transaction volume (versus 2.1% in 2019). One of the reasons for the decline is due to overall economic activity nearly tripling between 2019 and 2020. Scams made up the majority of such flows at 54% of funds received for illicit activity, followed by darknet markets (35%). Although ransomware accounted for only 7% of all funds received by criminal addresses, it was up 311% from 2019.

Chainalysis laid off 39 employees Thursday, about 20 percent of its workforce, as the startup prioritizes turning a profit and bringing products to market.

Bitcoin price broke down below the psychological level of $7,000 late on December 16. The cryptocurrency updated the December low after blockchain researcher Chainalysis said that PlusToken scammers were selling coins to cash out.

Blockchain analytics firm Chainalysis said Wednesday that it traced $2.8 billion in Bitcoin being sent by criminals to crypto exchanges in 2019, with the bulk of those transactions going to Binance and Huobi.