Unchained The Rogue 100: How Cryptocurrency Criminals Cash Out - Ep.156
Jan 28, 2020
Jonathan Levin, co-founder and CSO of Chainalysis, and Kim Grauer, head of research, shed light on the underbelly of cryptocurrency crime. They dive into how criminals cash out illicit crypto through exchanges and over-the-counter brokers, spotlighting the Rogue 100. The duo unpacks the massive PlusToken Ponzi scheme, which reportedly affected Bitcoin's price, and discusses the growing sophistication of hacker groups like Lazarus. They also touch on the rising threats of ransomware and terrorism financing, stressing the need for heightened regulatory measures.
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Crypto Crime Trends
- Criminals are increasingly using over-the-counter (OTC) brokers to launder cryptocurrency into fiat.
- This money laundering infrastructure has become more sophisticated and harder to track.
Shift in Cashing Out
- Risky services like BTC-e declined in 2017 after facing indictments.
- Illicit Bitcoin transactions shifted to exchanges like Binance and Huobi.
OTC Brokers and KYC
- OTC brokers, acting as customers of exchanges, are key players in money laundering.
- Exchanges must pressure OTC brokers to implement stricter KYC procedures.