The total volume of illicit crypto funds decreased significantly in 2023, dropping from $49.5 billion in 2022 to $34.8 billion, according to recent research by TRM Labs. This marks a 9% decrease in illicit crypto funds on a year-on-year basis. Despite this decline, bad actors still managed to handle over $34 billion in illicit crypto funds during the year.

One notable trend highlighted by TRM Labs is the reduction in the total value of funds sent to sanctioned addresses and entities. This value decreased from $25.4 billion in 2022 to $16.2 billion in 2023. The decrease in illicit activities was accompanied by increased pressure from governments and law enforcement bodies, leading to a three-fold rise in sanctions against crypto-related businesses and individuals.

Although overall illicit crypto activity decreased, the sale of illicit drugs on darknet marketplaces remained strong, with a volume of $1.6 billion in 2023, up from $1.3 billion in 2022. This indicates that the general crypto crime downturn had little impact on darknet marketplaces.

Chainalysis also corroborated TRM Labs’ findings, reporting an increase in revenue for fraud shops and darknet marketplaces following the shutdown of the Hydra marketplace in 2022. The combined revenue of darknet marketplaces surged to nearly $2 billion in 2023, representing a 25% increase from the previous year.

Furthermore, Chainalysis highlighted the emergence of two new darknet marketplaces aggressively promoting their offerings in Moscow to fill the void left by Hydra’s collapse.

In summary, while the total volume of illicit crypto funds decreased in 2023, darknet marketplaces continue to thrive, showcasing resilience in the face of regulatory pressures. Stay informed about the latest developments in the cryptocurrency space on Global Crypto News.

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