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In the year since we published our 2023 Typologies Report, important developments have impacted the relationship between cryptoassets and financial crime, putting pressure on compliance teams to remain vigilant and constantly adapt. It has become vital for law enforcement agencies and regulators to be able to consistently identify emerging criminal behavior in order to respond effectively.
Here’s what to expect in the latest edition, available for download:
Regulatory and sanctioning activity is intensifying
In January, the US Treasury’s Financial Crimes Enforcement Network (FinCEN) named cryptocurrency mixing activity a Primary Money Laundering Concern and proposed a rule for stricter reporting of transactions involving mixers. This was followed by intensive use of financial sanctions by the US Treasury’s Office of Foreign Assets Control (OFAC) through the first half of 2024, targeting crypto-asset activity involving a range of threat actors.
The risk of cryptoassets is growing
Amidst the evolving regulatory environment, we have seen other important developments in the financial crime risk landscape impacting the cryptoasset space, including:
- Stablecoins now appear regularly in financial crime typologies, including “pig slaughter” scams and sanctions evasion activities.
- Professional money launderers linked to Chinese organized crime groups use crypto-assets to move illicit funds across borders.
- Crypto asset exchanges in high-risk jurisdictions such as Russia continue to offer an important lifeline for criminal actors looking to convert crypto assets into fiat currencies.
- Ransomware attackers and North Korean cybercriminals are developing complex money laundering schemes that use mixers, cross-chain services, and chain-peeling techniques.
- Artificial intelligence (AI) is being used in crimes involving crypto assets, allowing cybercriminals to scale up their fraud and ransomware operations.
It has become more important than ever to understand the evolving nature of financial crime typologies in the crypto space to ensure effective risk detection and disruption.
To support this, we have designed the 2024 version of this report to reflect the changing landscape and provide the tools and insight needed to tackle crime effectively. We’ve included new and updated chapters, provided additional insights into innovations involved in cross-chain laundering typologies, such as DeFi and stablecoins, and added new case studies based on major law enforcement and regulatory measures.
How to use this report
At Elliptic, we are dedicated to equipping our customers with the data, insights and capabilities needed to navigate the rapidly changing crypto landscape. This report is designed as a reference guide for the cryptoasset industry and is an excellent companion to Elliptic’s block analysis solutions.
The Elliptic Typologies Report 2024 identifies over 40 typologies of financial crime in three critical areas – money laundering, terrorist financing and key trends related to criminal actors and threats. These typologies provide insightful views into the current activities of crypto threat actors, including the tools, approaches and platforms they are exploiting – with red indicators alerting you to illicit activity.
You can study this guide from top to bottom to familiarize yourself with cryptocurrency money laundering red flags or use it as a reference when suspicious activity occurs.
We hope you find this report useful.
Download the report here.
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