$120 Million Laundering Scheme Traced Through Cryptocurrency Networks
- ZachXBT traced over $12 million to deposit addresses at the KuCoin exchange.
- Approximately $8 million was linked to instant swap services, which often lack identity checks.
- Another $8 million was transferred off Tron onto the Bitcoin and Ethereum networks using Near Intents, a cross-chain swap tool.
- Tether blacklisted an address holding $72 million in USDT, preventing movement or cashing out of those tokens.
- The overall origin of the $120 million remains unclear, but its movement patterns suggest potential money laundering activities.
The tracing of these funds highlights how illicit activities can leverage cryptocurrency’s decentralized nature for laundering purposes. Tether’s intervention by freezing assets indicates a proactive approach to mitigate such risks.
With over $12 million traced to KuCoin and Tether freezing an address with $72 million in USDT, this incident underscores ongoing concerns about cryptocurrency use in illicit finance.
