Stablecoins have held the promise of serving as a link between the cryptocurrency realm and traditional financial services.
Turns out that nowadays, the digital holdings are also a favorite of fraudsters.
Blockchain analysis firm Chainalysis found in its latest report on the state of crypto crime trends that stablecoins have supplanted bitcoin as a key mover of illicit transactions. The data showed that stablecoins accounted for the bulk of illicit volumes last year (and the year before that).
“Through 2021, bitcoin reigned supreme as the cryptocurrency of choice among cybercriminals, likely due to its high liquidity,” the report said. “But that’s changed over the last two years, with stablecoins now accounting for the majority of all illicit transaction volume. This change also comes alongside recent growth in stablecoins’ share of all crypto activity overall, including legitimate activity.”