Criminal Whales Hold $25 Billion In Crypto Assets: Chainalysis Report

Christian Encila

1 year ago

2 mins read

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Chainalysis recently published a study on criminal enterprises, specifically the so-called criminal whales, that retain vast sums of money in the form of cryptocurrencies.

The study claimed that criminal whales still hold $25 billion in crypto assets despite substantial law enforcement seizures last year.

Cryptocurrency had a solid year in 2021, reaching a value of over $3 trillion in November, while bitcoin, which accounts for around a third of all cryptocurrency, also achieved a high until plummeting by more than 40% last week.

Criminals who stole bitcoin were among the biggest winners from rising prices, as the number of cryptocurrencies linked to illegal operations more than quadrupled since last year.

The Dark Web comes in second, providing $448 million in illegal cryptocurrency. Scams rank third with $192 million, Fraud Shops in fourth with $66 million, and Ransomware is at last row with $30 million.

Criminal Whales Swallow Big

According to the report, last year saw “a huge increase in criminal balances,” with criminal whales holding around $11 billion in 2021 compared to $3 billion in 2020.

Furthermore, the funds represent the lion’s share of crypto held by unscrupulous entities out of stolen funds, Ransomware, fraud and illegal trading.

Throughout the years, stolen funds have accounted for 93% of all criminal balances, according to latest figures. Criminal whales have obtained more than 10% of their funds through illegal addresses. They account for 3.7% of cryptocurrency whales.

Chainalysis is a popular blockchain surveillance company that publishes blockchain analytics research regularly.

Total crypto market cap at $1.711 trillion in the daily chart | Source: TradingView.com

Illegal Crypto-Related Activities

Whales are the biggest hodlers, with wallets containing over $1 million in cryptocurrency.

Iranian hackers were the most significant contributors to ransomware activity globally through 2021, according to the 2022 Global Threat Report by the cyber security firm CrowdStrike.

Thefts soared by 516%, accounting for $3.2 billion in illegal transactions, with the DeFi sector becoming a new cause of concern.

“Criminal balances also fluctuated throughout the year, from a low of $6.6 billion in July to a high of $14.8 billion in October,” Chainalysis disclosed.

Hodling is a phrase used in the cryptocurrency industry to describe persons who keep vast amounts of cryptocurrency without selling them in the hopes of making a profit in the future.

On the Brighter Side

Meanwhile, in a memo to investors, FSInsight predicted that Bitcoin would reach $200,000 in the second part of 2022.

According to FSInsight, Ethereum might reach a price of $12,000 this year, representing a 385% premium to where it is now trading.

According to the analysis, cryptocurrencies have become increasingly linked to infotech stocks. Sean Farrell, head of digital asset strategy, said this is due to “legacy market money joining the fold.”

Featured image from Nairametrics, chart from TradingView.com

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.