A recent fund analysis conducted by Bitrace reveals that over 3.439 billion USDT categorized as ‘at risk’ has flowed into Tron addresses involved in over-the-counter (OTC) businesses over the past 24 months. These addresses exclude those linked to centralized Trading platforms, compliant cryptocurrency acceptance platforms, and large money laundering institutions. The analysis also found that over half of the inflows into USDT are medium- to high-risk funds, with 14.7% associated with online gambling, 20.1% with gray and black market products, and 19.4% linked to money laundering.
Bitrace warns that gathering USDT from these OTC addresses increases the risk of contamination and susceptibility to risk management measures enforced by centralized platforms. Investors linked to these addresses may also face potential scrutiny from law enforcement agencies. The report emphasizes that while anonymity is an important aspect of the cryptocurrency industry, it also introduces higher associated risks. OTC trading markets with higher levels of anonymity tend to attract a higher proportion of risky crypto funds.
The research cites a case where cryptocurrencies were used for online gambling, and illicit funds made their way onto a trading platform, leading to money laundering allegations. One particular OTC address, “TGTKDo,” has been actively operating since September 2022, with a cumulative transaction volume exceeding 28.8234 million USDT. This address has initiated numerous transfers related to money laundering and online gambling, putting the platform accounts receiving these funds at risk of being controlled or frozen.
The cryptocurrency industry continues to face challenges, as evidenced by the unfolding “JPEX thunderstorm incident” in Hong Kong. Several local “over-the-counter exchange shop” operators have been arrested for assisting victims in depositing funds into JPEX. Bitrace’s earlier audit results of JPEX hot wallet addresses revealed 22.04% of risk funds. This could potentially lead to future anti-money laundering investigations for the operators of these acceptance companies.
Bitrace advises ordinary cryptocurrency investors to exercise caution when choosing a compliant and licensed platform for conducting OTC cryptocurrency transactions. Ignoring these risks may have severe consequences for investors and the broader cryptocurrency ecosystem..
#Bitrace #Reveals #Billion #Risky #TRC20 #USDT #Flowing #OTC #Addresses #Report
Bitrace warns that gathering USDT from these OTC addresses increases the risk of contamination and susceptibility to risk management measures enforced by centralized platforms. Investors linked to these addresses may also face potential scrutiny from law enforcement agencies. The report emphasizes that while anonymity is an important aspect of the cryptocurrency industry, it also introduces higher associated risks. OTC trading markets with higher levels of anonymity tend to attract a higher proportion of risky crypto funds.
The research cites a case where cryptocurrencies were used for online gambling, and illicit funds made their way onto a trading platform, leading to money laundering allegations. One particular OTC address, “TGTKDo,” has been actively operating since September 2022, with a cumulative transaction volume exceeding 28.8234 million USDT. This address has initiated numerous transfers related to money laundering and online gambling, putting the platform accounts receiving these funds at risk of being controlled or frozen.
The cryptocurrency industry continues to face challenges, as evidenced by the unfolding “JPEX thunderstorm incident” in Hong Kong. Several local “over-the-counter exchange shop” operators have been arrested for assisting victims in depositing funds into JPEX. Bitrace’s earlier audit results of JPEX hot wallet addresses revealed 22.04% of risk funds. This could potentially lead to future anti-money laundering investigations for the operators of these acceptance companies.
Bitrace advises ordinary cryptocurrency investors to exercise caution when choosing a compliant and licensed platform for conducting OTC cryptocurrency transactions. Ignoring these risks may have severe consequences for investors and the broader cryptocurrency ecosystem..
#Bitrace #Reveals #Billion #Risky #TRC20 #USDT #Flowing #OTC #Addresses #Report
