Illegal activity in the crypto sector is nothing new but, in recent months, it is nation-states that account for a growing share of it. In the last year, there has been a 694% increase in crypto received by sanctioned entities, including from Russia and Iran, according to a new section of Chainalysis’ Crypto Crime Report.
The report details the evolution of crypto crime over time. In the past, illicit use of crypto was dominated by individual actors exchanging hundreds of thousands or millions of dollars. Now, nation-states are beginning to dominate the sector, moving hundreds of millions or even billions in funds obtained through hacking or fraud.
“While nation-states have been utilizing cryptocurrency for a while, it’s happening at a different scale today,” said Andrew Fierman, head of national security intelligence at Chainalysis, a private firm that helps government agencies and crypto companies identify illicit activity.
The report comes out at a time when rumors swirl about the crypto holdings of another sanctions-prone country—Venezuela. While the South American nation is not named in the report, it has a long history with crypto. Fierman says that citizens have been using it as a way to counteract their currency’s hyperinflation.
