Connect with us

News

Money laundering cases on the rise through NFTs, claims Chainalysis

Published

on

cryptocurrencies on Amazon

HIGHLIGHTS :

  • Chainalysis has told about its study in a blog post.
  • Said it has detected hundreds of money laundering cases
  • It is claimed that more than half of those who did so lost their money

Chainalysis has told about its study in a blog post.

Blockchain analytics platform Chainalysis has stated that money laundering through the buying and selling of non-fungible tokens (NFTs) is a small, but growing area of ​​criminal activity. It is also known as ‘wash trading. It is a form of market manipulation, in which the investor sells and buys the same asset in the market for false and deceptive activity. In its new study, Chainalysis has found ‘small but visible’ money-laundering activity in NFTs.

It has detected hundreds of money laundering cases

Chainalysis has told about its study in a blog post. According to this, he has come to know about hundreds of money laundering cases. Chainalysis said that it has identified 262 users who have sold NFTs to self-financed addresses more than 25 times. The research firm found that more than half lost their money because their wash trading failed to generate interest from original buyers due to increased fees. Although 110 users collectively profited from this activity and managed to earn about $ 8.9 million (about Rs 67 crore).
Chainalysis did not mention NFT platforms in this study but said that it is finding only included NFTs purchased with Ether.

While the potential for NFT-based money laundering is relatively low compared to money laundering based on cryptocurrencies, it is worth noting that this activity is on the rise.

It is claimed that more than half of those who did so lost their money

The firm says that cases of money laundering make it difficult to build trust in NFTs and should be monitored more closely by the marketplace, regulators, and law enforcement.

Speaking to CoinDesk, Chainalysis’s Head of Research, Kim Grauer, says that the idea of ​​engaging in crime via NFTs is not a good idea, as it is expensive. It is difficult to guarantee that if you do wash trading, you will be profitable. If you want to use NFT for money laundering, it can be traced. Obviously, such things reduce the trust of the people in the cryptocurrency and NFT market and all the countries have to regulate this sector.

Obviously, such things reduce the trust of the people in the cryptocurrency and NFT market and also force many countries to regulate this sector.

In its new study, Chainalysis has found ‘small but visible’ money-laundering activity in NFTs.

Also Read :

Genshin Impact 2.5 announced: New characters, free Primogem codes, and more

Airtel Xstream Premium pack will get access to many OTT platforms, now the price starts from Rs 149.

Click to comment

Leave a Reply

Your email address will not be published.

Copyright © 2020 - 2021 TechZimo.com, All rights reserved.