- In 2022 illicit addresses recieved $20 billion worth of cryptocurrency assets, according to crypto intelligence tracker Chainalysis.
- $8.8 billion of 2022’s illicit transaction volume came from activity associated with sanctioned entities.
- Share of all cryptocurrency activity associated with illicit transactions nearly doubled year-on-year.
The cryptocurrency market was rife with criminal activity, hacks, exploits, firms defrauding investors, and commingling funds with related entities, in 2022. So says a report published by crypto intelligence tracker Chainalysis, who traced on-chain activity of illicit funds and entities, and noted a sharp year-on-year increase in the share of criminal activity in the ecosystem.
Also read: Will US CPI release whipsaw Bitcoin price to $16,500?
Crypto crimes at their worst in 2022, total value of assets received by criminal entities crosses $20 billion
Cryptocurrency traders have lost their funds to firms’ bankruptcy, insolvency, and illicit usage of funds in 2022. The total value of Bitcoin, Ethereum and other crypto assets that hit wallets associated with criminal activity has crossed $20 billion. The number has climbed 11.11% since 2021 as seen in the chart below.
Cryptocurrency value received by illicit addresses
The numbers in the chart above do not include non-crypto native crimes like money-laundering and drug trafficking that involve the use of crypto and are not directly related to the ecosystem.
Shockingly, 44% of 2022’s illicit transaction volume came from activity associated with sanctioned entities. This comes as 2022 marks a year when the Office of Foreign Assets Control (OFAC) launched some of the most difficult-to-enforce sanctions.
OFAC is a financial intelligence and enforcement agency of the U.S. Treasury Department. The agency sanctioned three notable firms: Hydra, Tornado Cash and Garantex: all three are associated with the darknet market. The agency sanctioned nearly 350 addresses and 10 crypto-related entities.
Despite OFAC sanctions, Russia-based exchange Garantex continued its operations. Transactions associated with Garantex or any other sanctioned crypto service represent, at the very least, substantial compliance-risk for businesses that are subject to US jurisdiction, including fines and potential criminal charges.
Overall, the share of crypto activity associated with illicit addresses has doubled from 0.12% in 2021 to 0.24% in 2022.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks

Ripple Price Prediction: Whale accumulation sparks hope as rising exchange reserves signal caution
XRP sustains mid-week recovery as XRP/BTC flashes golden cross for the first time since 2017. Large volume holders increase XRP exposure, indicating rising demand and investor confidence.

Pi Network Price Forecast: PI eyes $0.66 as whale activity surges
Pi Network (PI) declines by nearly 4% on Friday, trading at $0.79 at press time. The technical outlook suggests a downward move ahead as the short-term recovery concludes with a trendline breakdown.

Bitcoin Weekly Forecast: BTC enters full price-discovery mode after seven straight weeks of gains
Bitcoin price stabilizes around $111,000 on Friday after reaching a new all-time high of $111,900 this week. Corporate accumulation, institutional demand, signs of easing regulations and fiscal woes in the US have fueled BTC’s rally.

Jupiter Price Forecast: JUP eyes $0.82 as Fluid backs Jupiter's upcoming lending protocol
Jupiter exchanges announced the upcoming launch of Jupiter Lend, powered by Fluid, on Solana this summer. With the announcement of Jupiter Lend, the JUP token surged 16% in the last 24 hours.

Bitcoin: BTC enters full price-discovery mode after seven straight weeks of gains
Bitcoin (BTC) price stabilizes near $111,000 on Friday after reaching a new all-time high of $111,900 this week. BTC enters an uncharted territory as a perfect storm of corporate accumulation, institutional demand, signs of easing regulation and increasing concerns among investors about debt sustainability in the United States (US) have fueled bullish momentum.