[REPORT PREVIEW] Money Laundering and Cryptocurrency: Trends and new

This blog is a preview of our Money Laundering and Cryptocurrency Report. We’re excited to debut first-of-its-kind research that dives deep into the complexities of money laundering in the crypto ecoystem. Building on the analyses we publish in our annual Crypto Crime Report, this comprehensive report not only shows how to trace known illicit funds on the blockchain but also introduces advanced data techniques to identify potential money laundering activities for lead generation. It also explores global anti-money laundering policy (AML/CFT) and strategies for both crypto-native and non-crypto-native scenarios. Discover how blockchain intelligence and data-driven insights are the cornerstone of crypto investigations and how technology is empowering institutions in the fight against money laundering and other financial crimes.

While public blockchains are inherently transparent and traceable, illicit actors turn to cryptocurrencies to launder ill-gotten gains for the same reasons people use them for legitimate purposes: they are cross-border, virtually instant, and generally inexpensive to transact. Money laundering in the crypto context is typically associated with cybercriminals attempting to conceal the flow of funds related to on-chain crimes, such as darknet market and ransomware operations. However, cryptocurrency is increasingly being used to launder funds from a broader range of illicit activities beyond the conventional understanding of crypto crime. The growing ubiquity of crypto has made it a tool for laundering proceeds from various off-chain crimes, such as narcotics trafficking and fraud. In 2024, money laundering in crypto encompasses all crime — not just that which is inherently tied to the crypto ecosystem. 

This shift carries significant implications for investigators. First, expertise in cryptocurrency must extend beyond specialized cybercrime units to include law enforcement agencies of all kinds. Cryptocurrency is now one of the payment methods used by illicit actors worldwide, and therefore this expertise must encompass both blockchain transaction tracing and a comprehensive understanding of traditional money laundering tactics. Second, there is a silver lining: with the right data and tools, investigators in the public and private sectors can leverage the transparency of blockchain to uncover illicit activity that may otherwise go undetected. Blockchain analysis can generate both intelligence signals for proactive lead generation and more concrete evidence of illicit flows in existing investigations, helping a broad range of analysts and investigators unravel increasingly sophisticated money laundering networks.

What is money laundering?

Money laundering is the process of concealing the origins of money obtained from illegal activities so that the funds can be used without drawing attention to their illicit source. This typically involves making large sums of money generated by criminal activities, such as drug…