• Bitcoin accounted for 19% of illicit crypto volume in 2022, down from 97% in 2016.
• Ethereum and Binance Smart Chain have risen to prominence among hackers.
• Terrorists are now using Tron blockchain assets instead of just Bitcoin.
Decline of Bitcoin in Illicit Crypto Transactions
The multi-chain ecosystem has prodded criminals to look beyond Bitcoin to launder their illicit crypto. According to TRM Labs’ Illicit Crypto Ecosystem report, Bitcoin’s share in criminal crypto transactions has significantly declined over the past six years. In 2016, it accounted for 97% of illicit crypto volume, while by 2022 this had dropped to 19%. Similarly, the share of Bitcoin stolen from hacks fell from two-thirds in 2016 to 3% in 2022.
Rise of Ethereum and Binance Smart Chain
Ethereum has become the go-to asset for hackers, accounting for 68% of all hack volumes involving cryptocurrencies . Additionally, Binance Smart Chain was also used in 19% of such cases . This suggests that cybercriminals have taken a “qualitative leap away” from Bitcoin and are now exploring other blockchains and assets.
Shift Towards Tron Blockchain Assets
Another notable shift is visible when it comes to terrorism financing. In 2016, only Bitcoin was used as a cryptocurrency for such activities , however that changed drastically by 2022 when assets on the Tron blockchain became popular tools – accounting for 92% of crypto used for terrorist financing.
Implications
This data demonstrates how quickly things can change within the cryptocurrency space as more blockchains come into play . Not so long ago , everyone thought that only Bitcoin could be used for illegal activity but today we know that’s not true . The rise of Ethereum and Binance Smart Chain show how smart criminals really are – they might not always be able to stay one step ahead or avoid getting caught , but they certainly know how to take advantage of new opportunities when they arise . They also show us that no single cryptocurrency is immune from being exploited – even those with much lower market caps than those seen on top exchanges like Coinbase are still vulnerable .
Conclusion
It remains unclear what impact this will have on the larger cryptocurrency industry moving forward , but one thing is certain : There is no “safe harbor ” when it comes to illegal activity with digital currencies . Criminals will continue finding new ways to exploit any form or type of currency available at their fingertips .