Chainalysis is doing a tremendous job in convincing everyone crypto isn't being used by criminals.
Their "less than 1% of crypto transactions are criminal" claim has been relayed thousands of times in the crypto & mainstream media.
Of course, this claim is weapons-grade bullshit.
Their "less than 1% of crypto transactions are criminal" claim has been relayed thousands of times in the crypto & mainstream media.
Of course, this claim is weapons-grade bullshit.
First, their numbers are based on "proprietary methodology". You basically need to trust a company 100% focused on crypto that crypto is legit.
Second, when they say that "x% of transfers are criminal", what they actually mean is "we managed to flag x% of transfers as criminal".
Second, when they say that "x% of transfers are criminal", what they actually mean is "we managed to flag x% of transfers as criminal".
Chainalysis doesn't say what total percentage of transfers they manage to classify. So if they flag 1% as criminal but only manage to classify 2% of all transfers, that's really, really bad.
As a point of reference, in 2019 they classified $20B of transfers as "criminal" - ...
As a point of reference, in 2019 they classified $20B of transfers as "criminal" - ...
and $4B as "merchant payments" (including dark net payments).
So Chainalysis' claim shouldn't be "less than 1% of crypto payments are criminal", but instead "criminal usage of crypto is 5x greater than for payments". This is much more accurate, and also much less reassuring.
So Chainalysis' claim shouldn't be "less than 1% of crypto payments are criminal", but instead "criminal usage of crypto is 5x greater than for payments". This is much more accurate, and also much less reassuring.
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