Blockchain Analytics Emerging to Track Illicit Crypto Activity and Protect Investors
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Blockchain transactions are recorded on a permanent ledger, allowing investigators to track relationships between addresses and entities to identify real-world ties.
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Though concerns persist, illicit crypto activity represented just 0.24% of transactions in 2022, far less than the estimated 2-5% of global GDP laundered annually.
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Tools like Chainalysis and Elliptic use on-chain analysis to track and trace cryptocurrency transactions, even complex money laundering schemes.
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Growing institutional interest in crypto assets increases the need for on-chain tracking to protect investors from criminal activity.
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On-chain data provides meaningful insights into adoption, activity levels, decentralization and more to inform investment decisions.