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.

While stolen funds make somewhere around 8% of the entire sum that goes through these crypto mixers, the anonymizing services still are the primary crypto destination after being stolen, Curtis said.

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.

The numbers from Chainalysis show that Wasabi Wallet has managed to mix $250 million worth of Bitcoin in 2019 so far, seeing a notable volume increase since January.

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.