Crypto’s $100 Billion in Illicit Flows Swamp Stablecoins, Exchanges

Suspect digital wallets have distributed close to $100 billion in illicit funds across the cryptocurrency market since 2019, flows that often touch popular stablecoins and centralized exchanges, according to Chainalysis.

Bad actors are making record use of stablecoins, which now account for most of the illicit transaction volume in crypto, Chainalysis said in a study. More than half of all questionable flows wind up on centralized exchanges, it added. Stablecoin issuers Tether and Circle didn’t immediately return requests for comment.