October 1, 2022

The Fed believes that 50% of Bitcoin transactions are related to illegal activities

The Fed believes that 50% of Bitcoin transactions are related to illegal activities

Member of the Board of Governors of the US Federal Reserve, Lael Brainard, said that a quarter of Bitcoin users and half of the transactions with his participation are connected with criminal activity.

Speaking at the ECB Colloquium in Frankfurt, shecited data from various studies, according to which bitcoin is still in great demand in the criminal world and is an attractive asset for attackers.

In particular, Lael Brainard indicated that only a third of the 120 most popular crypto exchanges implemented AML / CFT mechanisms require identification to withdraw or deposit funds.

This situation worries the Fed representative,since according to a study by Oxford University, 50% of all bitcoin transactions violate the law in one way or another, and 25% of all users are associated with illegal activities. Although she did not mention that everyone can own an unlimited number of addresses.

Despite the examples of Lael Brainard, manyOther studies show that criminals have virtually stopped using Bitcoin in their operations because of the ease of tracking the movement of funds, and prefer cash.