Chainalysis: Traditional Money Launderers Begin Using Crypto Networks to Create "Massive Money Laundering Infrastructure"

Traditional money launderers (criminals working outside of cryptocurrencies) may also be moving their cash up the chain, according to a report released by Chainalysis. According to research director Kim Grauer, traditional money launderers are beginning to utilize crypto networks to create "massive money laundering infrastructures" to launder cash outside of cryptocurrencies. These transfers are not known to have originated from the crypto fraud, theft, and ransomware attacks that Chainalysis is known for flagging on the blockchain, the transparent digital ledger of all crypto transactions, which are more opaque and come from wallets that are not considered to be illegal by comparison. Yet, they flow into exchanges across the blockchain following tactics that traditional financial compliance departments might flag. For example: splitting into rounded portions slightly below the Know Your Customer (KYC) reporting threshold and then piecing them back together again.