A data analytics firm says a scan of the XRP Ledger shows $400 million in XRP transactions involve illegal activity.
Tom Robinson, chief scientist and co-founder of Elliptic, says the illicit transfers make up fewer than 0.2% of all XRP transactions, showing that the vast majority of activity involving the third-largest cryptocurrency by market cap is legitimate.
“We began researching XRP more than a year ago and have already identified several hundred XRP accounts linked to illicit activity ranging from thefts to scams and the sale of stolen credit cards.
As criminal use of crypto-assets such as XRP evolves, we are committed to shining a light on this illicit activity, giving financial institutions the confidence they need to engage with the crypto ecosystem.”
The company says it has assessed risk on transactions worth several trillion dollars across the crypto ecosystem in a push to identify activities involving money laundering, terrorist fundraising, fraud, and other financial crimes.
Its analysis of Bitcoin finds that 0.5% of BTC transactions are tied to the dark web.
“As of 2019, only $829 million in bitcoin has been spent on the dark web1 (a mere 0.5% of all bitcoin transactions.)
Since blockchain technology provides a public record of each transaction, exposure to the risk of financial crime in cryptocurrency including bitcoin money laundering is manageable.”
In comparison to the risks presented by cryptocurrencies that fuel illicit activities, a report published by the United Nations Office on Drugs and Crime tracks over a trillion dollars that are funneled through the traditional monetary system every year.
A separate report by Bloomberg also highlights the multi-trillion-dollar money laundering industry involving banks and national currencies.
Elliptic is backed by SBI Group, Octopus Ventures and Santander Innoventures, among others.
The company recently added XRP to its analytics platform, which is designed to help clients identify and avoid risk in the blockchain and crypto industries.
Its support for XRP is currently in beta, with a full roll out planned for next month.
