Stolen funds reflect just 8.1% of the cryptocurrencies processed through mixers, according to Chainalysis, a blockchain analytics firm from New York.
In a Chainalysis Webinar held recently, it was revealed that most of the funds received to the cryptocurrency mixers are from different exchanges, and this indicates the funds are used primarily for privacy reasons instead of illegal activities.
Held on Aug. 14th, the webinar titled “Cryptocurrency Typologies: What You Should Know About Who’s Who on the Blockchains” aimed at most of the risk typologies linked to the crypto industry, including terrorist financing, darknet markets, stolen funds, scams, sanctioned cryptocurrency addresses, and more.
The Chainalysis presentation described cryptocurrency mixers as software or websites for concealing where the funds came from and which don’t employ any Know Your Customer (KYC) procedures. It further claimed that these software and websites exist on both darknet and clearnet and are usually controlled centrally.
Considering crypto mixers as high-risk typology, the claims from Chainalysis said that up to 40% of the entire funds with crypto tumblers come from the crypto exchanges, whereas darknet market sends only 2.7% of these funds.
Most of the funds on cryptocurrency mixers come from various other crypto mixing services, and that’s believed to add an additional obfuscation layer, explained Hanna Curtis, senior product manager of data at Chainalysis.
Furthermore, Chainalysis also noted how increasingly popular decentralized mixer protocols are getting in comparison to their centralized counterparts because of their vulnerability to the law enforcement agencies.
On the other hand, Bestmixer, the major centralized cryptocurrency mixer, mixed only $200 million worth of BTC during the last 12 months before it was shut down for money laundering.