Chain Analysis published report – Cybercrime and Money Laundering


The Chain Analysis company is involved in investigating cybercrimes, analysing blockchain system, and reporting to an investigative authority. In its last analysis and report, the company said that $2.8 billion worth of cryptocurrencies was laundered in 2019. As stated in the report, 50% of the money ended up in Binance and Huobi, which are the two biggest exchange platforms for cryptocurrencies, while others accounted for 47%. The company pointed to the weak system of Binance including its optional KYC, high rates without proper monitoring, the possibility of making a withdrawal of $17,000 in a day, and the unlimited number of accounts per person, which could allow criminals to perpetrate their acts.

Chain Analysis also identified OTC brokers as a bigger culprit in the report, saying that the broker takes a very huge amount of money and transfer them into stock exchanges. The analysis shows that the OTC broker could be working with Huobi trading platform to launder money because brokers do not have a strict KYC requirement, and they have accreditation to the stock exchange. Chain analysis finds it easy to gather data, analyze them, to unveil suspicious transactions, except for companies like Monero that uses data privacy and protection.