Chinese crypto addresses sent $2.2bn to scams, darknets in 2019-2021: Report

August 6, 2021

Chinese cryptocurrency addresses sent more than $2.2 billion worth of digital tokens to addresses tied to illegal activity such as scams and darknet operations between April 2019 and June 2021, according to a report from blockchain data platform Chainalysis cited by Reuters.

These addresses received $2 billion in cryptocurrency from illicit sources as well, making China a large player in digital currency-related crime, it added. The report analyses China’s cryptocurrency activity amid government crackdowns.

The vast majority of China’s illegal fund movements in crypto have been related to scams, although that has declined as well, the Chainalysis report said.

Chainalysis also described China as the hub of the global fentanyl trade, with many Chinese producers of the drug using cryptocurrency to carry out transactions.

Money laundering is another notable form of crypto-based crime disproportionately carried out in China, Chainalysis said.

Most cryptocurrency-based money laundering involves mainstream digital currency exchanges, often through over-the-counter desks whose businesses are built on top of these platforms.

Chainalysis noted that China appears to be taking action against businesses and individuals facilitating this activity.

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