Crypto Criminals Use These Three Crypto Exchanges Heavily, S...
Cryptocurrency, News

Crypto Criminals Use These Three Crypto Exchanges Heavily, Says Report

It is a known thing that criminals perpetrate their nefarious activities under the anonymity of the cryptocurrency market. Their activities have constantly or persistently caused trouble in the cryptocurrency space.

Those who are against cryptocurrency dwell on it when talking about the reasons to avoid it. Some have said cryptocurrencies cannot be considered legitimate currencies due to the roles they play in certain criminal activities.

However, centralized exchanges have established measures that pose difficulty for bad actors in selling the cryptocurrencies obtained illegally. According to a new report by Chinese research company PeckShield, few cryptocurrency exchanges still have huge inflows of funding from high-risk addresses.

High-risk addresses are the addresses associated with hackers, darknet marketplaces, and other sources. PeckShield noted that cryptocurrencies from such addresses have been flowing into exchanges at an unprecedented rate this year.

The report noted 13,927 transactions from such addresses into cryptocurrency exchanges. Furthermore, more than 147,000 Bitcoin (valued at about $1.4 billion at press time) were involved in these transactions.

It is apparent that such illegal activities slow down the cryptocurrency market’s growth. For instance, the renowned now-defunct PlusToken Ponzi scheme mounted a huge bearish pressure on both BTC and ETH. Unfortunately, some people believe that such perpetrators will keep mounting huge pressure on the cryptocurrency market for the years to come.

The report stated that the three cryptocurrency exchanges used heavily by criminals include Binance, Huobi, and OKEx. They offload their illegal cryptocurrency holdings mostly to Huobi, closely followed by Binance and OKEx.

They offloaded an aggregate of 60 percent of the amount of Bitcoin (90,000 BTC) transferred throughout the previous 6 months to the three exchanges. The research firm said they launder the majority of these funds via cryptocurrency mixing services on the way to the exchanges, making it difficult to track.


Sudarshan M is a long time crypto-enthusiast. Pulled in by bitcoin early on, it did not take long for Sudarshan to divert all of his academic attention from business studies to blockchain by doing his Masters and eventually pursuing his PhD in the subject.