According to Chainalysis, the bulk of cryptocurrencies sent to mixers this year came from centralized exchanges, DeFi protocols, and addresses associated with illicit activity.
According to the report, 23% of cryptocurrencies received by mixing services were obtained illegally. In 2021, this figure was at the level of 14%. However, analysts point out that there are many other reasons for using mixers, such as trading digital assets under repressive state laws or anonymizing legitimate but confidential transactions.
Mixers are classified in the US as money transfer services operating under the Bank Secrecy Act. Such services must register with FinCEN and implement an anti-money laundering (AML) program. However, the analysts noted that they are not aware of any mixers currently complying with KYC or AML regulations.
The main functionality of mixers, according to analysts, makes them a convenient tool for cybercriminals. In 2022, more cryptocurrencies hit mixers than ever before. However, Chainalysis noted that cryptocurrency mixers will soon begin to become obsolete as blockchain transaction tracking methods are constantly improving.
Previously, analytics firm Chainalysis released a tool to track transactions across decentralized finance (DeFi) protocols and multiple blockchains.
Source: Bits
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