FATF reveals which cryptocurrency transactions look suspicious


  • The intergovernmental organization provided a list of cases where the transaction can be considered suspicious

  • The FATF recognized that each case must be considered separately

  • Eastern Europe remains the leader in cryptocurrency market crime

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Intergovernmental Organization publishes list of patterns that signal potential fraudulent activity

The Financial Action Task Force on Money Laundering (FATF) presented a list of cryptocurrency transactions that the organization believes may indicate fraudulent activity.

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In a published report titled “Virtual Assets. Money Laundering and Terrorist Financing Alarms “, FATF describes key behavioral algorithms that signal strange activity in the cryptocurrency market.

FATF refers to suspicious cryptocurrency transactions:

  • transactions with various wallets, especially those that are registered or operate in a different legal field;
  • transfer of large funds in a short period of time (several transactions in 24 hours);
  • transfers of large amounts to a newly registered or previously inactive account on the exchange;
  • quick deposit and withdrawal of funds from a cryptocurrency exchange;
  • FATF reveals which cryptocurrency transactions look suspicious
  • deposit of funds suspected of theft or fraud;
  • a large initial deposit that does not match the user’s profile on the exchange;
  • trading with all available balance or withdrawing the entire balance from the platform in one operation;
  • frequent transfers within a certain period of time to the same account by more than one person / large amounts or from one IP address;
  • exchange of a token from a monitored blockchain network (like bitcoin) for anonymous cryptocurrencies (like Monero or Zcash), with further withdrawal to decentralized exchangesCryptocurrencies continue to march across the planet, becoming increasingly mainstream and finding ever new areas of use. People buy bitcoin, … More or hardware wallets;

Roundabout ways

As an example of money laundering through cryptocurrencies, the FATF told about a case when, in order to hide the source of illegal funds obtained from illegal drug trafficking, attackers accepted payment in bitcoin, as well as EXMO codes (the internal currency of the EXMO cryptocurrency exchange).

The illicit funds received in fiat currency were converted into cryptocurrencies using an anonymous account by the Blockchain platform (most likely referring to blockchain.com). Then the cryptocurrencies were converted back to fiat through the exchange, and later transferred back to the personal bank accounts of the attackers.

“To cover up the traces, cryptocurrencies were first transferred to decentralized bitcoin wallets, and then to different wallets at different exchanges,” the FATF said.

Despite the impressive list of suspicious transactions, the organization recognized that the list is not exhaustive, and each pattern must be considered in a specific situation.. 

Monkey labor

CipherTrace, an analyst firm, said financial institutions cannot identify up to 90% of suspicious cryptocurrency transactions. The results of the CipherTrace study indicate that most of the banks operating in the world do not understand the nature of cryptocurrency transactions, and therefore cannot adequately analyze and block them..

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It was the inability of traditional financial institutions to track cryptocurrency transactions that led Eastern Europe to become the leader in the activity of criminal cryptocurrency transactions..

Cultivate Crypto Episode 44: When Bitcoin Hits $100K FATF Regulations Will Not Matter. Here’s Why.

The most popular place is still the Hydra Marketplace. In just a day, the total turnover of the domestic site of prohibited funds has already increased by 296 BTC ($ 3.2 million) to 356,000 BTC ($ 3.8 billion).

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FATF reveals which cryptocurrency transactions look suspicious
FATF reveals which cryptocurrency transactions look suspicious
FATF reveals which cryptocurrency transactions look suspicious
FATF reveals which cryptocurrency transactions look suspicious

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