Chainalysis “Detection of Bicycle Transactions and Money Laundering in the NFT Market”

Chainalysis “Detection of Bicycle Transactions and Money Laundering in the NFT Market”


[Blockchain Today Correspondent Lee Ji-eun] Blockchain data platform company chainalysis (Korea Branch Manager Baek Yong-gi) today announced the ‘NFT’, a part of the ‘2022 Virtual Asset Crime Report’ that analyzes virtual asset crimes on the 28th.

According to the report, Chainalysis has detected illegal activities such as wash trading and money laundering in the NFT industry.

Bicycle trading refers to a transaction in which a seller pretends to be a buyer and misleads the value and liquidity of an asset.

As a result of tracking NFT bicyclists through blockchain analysis, Chainalysis analyzed that the bicyclists who made a profit made huge profits. Of the 262 users who sold more than 25 NFTs to self-funded addresses, 110 profitable cyclists earned about $8.9 million, mostly from sellers who believed their NFTs would increase in value. . Meanwhile, the loss of 152 non-profit cyclists is about $420,000.

The NFT is designed as a unique unit based on blockchain. Therefore, NFT-based money laundering can be reliably estimated with the inherent transparency of blockchain. The amount transferred from illegal addresses to the NFT marketplace is worth more than $1 million in virtual assets as of the third quarter of 2021, and approached $1.4 million in the fourth quarter of 2021. Most of these occurred at addresses related to the scam, and the amount of stolen funds also increased significantly. Meanwhile, Chainalysis analyzed that virtual assets worth about $280,000 were sent from addresses feared to be sanctioned.

Baek Yong-ki, head of Chainalysis Korea, said, “NFT transactions and money laundering are very small compared to virtual asset-based money laundering, which is estimated at $ 8.6 billion. Marketplaces, regulators, and law enforcement agencies all need to closely monitor this as there is a risk that the amount of money raised could seriously undermine trust in the NFT.”

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