According to our analysis, hackers managed to steal a whopping $1.175 billion worth of crypto-assets in Q1 2022. However, in Q1 2021, this amount only accounted for $130 million. Decentralized finance (DeFi) protocols seem to be targeted by hackers. In 2022, several DeFi protocols suffered hacks and exploits, such as Ronin Network, Beanstalk, and Rari Capital.
Funds related to crypto hacks pose heightened money laundering and terrorism financing risks. Indeed, hackers can use different transactional patterns to cover their digital tracks and transactions in an attempt to launder the stolen funds. Three of the most common laundering techniques include, for example, mixing services, structuring, and peeling chains.
Choosing the right provider for your crypto compliance issues
Because crypto hacks can threaten the safety and stability of crypto markets, it is vital for companies dealing with crypto-assets to onboard the right partner for their crypto compliance issues. Blockchain analytics providers like Scorechain help their customers to monitor crypto transactions, spot red flag risk indicators, and mitigate risks related to suspicious or illicit activities like money laundering or terrorism financing.
Would you like to discover how you can leverage Scorechain’s blockchain analytics solution to implement and enhance your compliance policies? Don’t hesitate to request a demo or contact us at firstname.lastname@example.org.
Scorechain is a Risk-AML software provider for cryptocurrencies and digital assets. As a leader in crypto compliance, the Luxembourgish company has helped over 200 customers in 45 countries since 2015, ranging from cryptocurrency businesses to financial institutions with crypto trading, custody branch, digital assets, customers onboarding, audit and law firms, and some LEAs.
Scorechain solution supports Bitcoin analytics with Lightning Network detection, Ethereum analytics with all ERC20 tokens and stablecoins, Litecoin, Bitcoin Cash, Dash, XRP Ledger, Tezos, Tron with TRC10 and TRC20 tokens, and BSC with BEP20 tokens. The software can de-anonymize the Blockchain data and connect with sanction lists to provide risk scoring on digital assets, transactions, addresses, and entities. The risk assessment methodology applied by Scorechain has been verified and can be fully customizable to fit all jurisdictions. 300+ risk-AML scenarios are provided to its customers with a wide range of risk indicators so businesses under the scope of the crypto regulation can report suspicious activity to authorities with enhanced due diligence.