Cryptocurrency analysts have found that over $100 billion in digital assets have been laundered through exchange services since 2019. This includes nearly $100 billion sent from wallets linked to illegal activities.
Centralized exchanges, DeFi projects, mixers, gambling resources, and cross-chain bridges are the main methods used. The year 2022 saw a record high, with transactions exceeding $30 billion. A significant portion of these illicit transactions involves stablecoins, which pose a risk of fund freezes by issuers like Circle and Tether.
Mixers and privacy-focused coins such as Monero and Zcash are also heavily utilized. Despite the rise of cross-chain bridges, over half of the laundered assets still end up on centralized exchanges.
Interestingly, there has been a decline in funds flowing into centralized exchanges, from nearly $2 billion per month at its peak to about $780 million per month, indicating improved anti-money laundering measures.
This trend underscores the growing effectiveness of compliance programs in curbing illicit activities in the crypto market.
