According to a growing body evidence compiled by Chainalysis, cryptocurrencies are being used to evade economic sanctions. This is not a new issue, but the problem is escalating. A bulk of the illicit funds in recent months have flowed between Binance and Iran’s largest crypto exchange, Nobitex. And most of the transactions reportedly were in the low-profile cryptocurrency TRON, which makes it easy for users to conceal their identities. A new JD Supra report highlights the worrying trend. It cites a Reuters article from last November charging Binance with helping Iranian firms trade $8 billion. This happened in the face of US sanctions targeting Iran. According to Reuters (citing Chainalysis data), the flow of crypto transactions between Binance and Iran’s biggest crypto exchange, Nobitex, enabled Iranian firms to get around the sanctions and do some $8 billion worth of trading. Moreover, three-quarters of the funds were in the form of TRON. This “low-profile” cryptocurrency helps users stay anonymous and off the grid. In short, it facilitates clandestine and criminal operations. (Binance has since delisted TRON, whose founder Justin Sun faces an SEC enforcement action.) Other data compiled by Chainalysis, and reported by Reuters, are alarming. Chainalysis stated in a recent preview of its 2023 Crypto Crime Report that last year, illicit transactions involving crypto rose for the second year in a row.
Full report : How Sovereign Governments Are Using Crypto to Evade Sanctions.
