5 Illicit cryptocurrency transactions reached $24.2 billion worldwide in 2023 4 . While this represents less than 1% of the total worldwide value of cryptocurrency transactions, these illicit transactions have an outsize impact by fueling many types of serious crime. Time till mainstream adoption: TODAY Total Cryptocurrency Value Received by Illicit Addresses Source: Chainalysis 2024 Blockchain analysis- Investigators can use blockchain analysis solutions to analyze, identify and cluster data from blockchain public ledgers. These tools model and visually represent data to help investigators identify key information about suspicious users and transactions. In certain cases, investigators can successfully breach the anonymity of crypto if they follow the money trail of transactions to mainstream exchanges which enforce Know Your Customer (KYC) regulations and then obtain the account holder’s identity. Blockchain analytics for de-anonymization- Criminals often employ the use of mixers and shapeshifters, stealth addresses, chain and asset swapping, privacy-enhanced communication, and privacy wallets to hide their identities. Instead of using mainstream exchanges, they often “cash out” through illicit exchanges or decentralized, peer-to-peer exchanges, and use non- custodial wallets. In the case of non-custodial wallets, also known as unhosted wallets, no entity enforces KYC regulations and only the wallet owner has the private keys which enable accessing and transferring funds. Technology capabilities needed: Authorities may detect that a non-custodial wallet is associated with illicit activity, but without the right blockchain analytics solutions they cannot determine who is the owner of the wallet and have no way to seize the funds. CHECK OUT THE FULL TECHHORIZON REPORT $24.2B 2023 $39.6B 2022 2021 $23.2B Sanctioned entity Terrorism financing Sanctioned jurisdiction FTX creditor claims (fraud) Cybercriminal administrator Ransomware Stolen funds Darknet market Scam