Bitcoin is losing the hearts and minds of criminals, according to a fresh report from Chainalysis.
They like stablecoins now.
Why it matters: Money laundering takes time, and even criminals don't want to expose themselves to volatility as they slowly but surely move ill-gotten gains into a form they can use.
By the numbers: A new report from the top blockchain surveillance firm provides further evidence that the criminal world (like everyone else) prefers stablecoins.
Follow the money: The report explains that money laundering on chain includes bouncing assets through multiple wallets as a way of throwing off the scent of crime.
Previously, lots of bitcoin was hopping through lots of bitcoin wallets, peaking at around 700 million in 2020.
Stablecoins, which had been little used by criminals until 2021, hit an inflection point in that year, with wallets receiving illicit funds spiking.
In 2022, the number of wallets hiding dirty stablecoins surpassed ones with dirty bitcoin.
The bottom line: In 2023, Chainalysis was watching more than 6 million addresses that were bouncing stablecoins, while bitcoin had fallen to less than 5 million naughty wallets.
