Advanced cryptocurrency laundering techniques remain a challenge

As price action stagnates, turbulent scenarios emerge that destabilize the cryptocurrency market, according to a Chainalysis report, sophisticated money laundering techniques pose a significant challenge for law enforcement and cryptocurrency service providers.

It bears mentioning that, "On July 11, blockchain analytics firm Chainalysis released a report on cryptocurrency money laundering that highlights the trend of billions flowing through the cryptocurrency ecosystem from illicit wallets to conversion services every month."

The truth is, "The increasing use of stablecoins such as Monero (XMR) in these transactions adds another layer of complexity, though it also introduces risks for launderers, as stablecoin issuers can freeze funds"

Additionally it is known that, "Cloaking services, such as mixers and private coins, further complicate the tracking of illicit funds. One example of a mixer is Tornado Cash, which mixes cryptocurrencies from multiple users to conceal their origin."

Now, "The report also reveals that centralized exchanges (CEXs) remain one of the top destinations for illicit funds, with more than 50% of these funds ending up on such exchanges due to their high liquidity and integration with traditional financial services"

Cointelegraph. How law enforcement struggles with sophisticated crypto laundering. Link

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