$400 Million of Ripple (XRP) Transactions Are Tied to Illegal Activity According to Blockchain Forensics Firm Elliptic

November 22, 2019 / by Crypto.IQ

Blockchain forensics firm Elliptic has launched what they claim to be the world’s first Ripple (XRP) transaction monitoring system, and right off the bat $400 million of Ripple (XRP) transactions tied to illegal activity have been exposed.

Although it seems odd that criminals would choose Ripple (XRP) for their illegal activities, essentially any form of money or currency can be used by criminals. In this case, Elliptic identified hundreds of suspect Ripple (XRP) accounts that are tied to thefts, scams, money laundering, and the sale of stolen credit cards.

In order to figure out which Ripple (XRP) transactions are associated with illegal activity, Elliptic did research on the dark web, identified money laundering patterns, and obtained data linking Ripple (XRP) accounts to known entities.

The silver lining is that the $400 million of Ripple (XRP) transactions tied to illegal activity only accounts for 0.2% of total Ripple (XRP) transactions, equivalently meaning 99.8% of Ripple (XRP) transactions are legitimate.

With the launch of Ripple (XRP) transaction monitoring, Elliptic now has blockchain forensic systems for 85% of all cryptocurrencies by market cap. In the coming months and years Elliptic is aiming to add even more cryptocurrencies to their monitoring system.

The point of blockchain forensics is so that financial institutions can facilitate cryptocurrency activity while being able to identify and eliminate any illegal activity, rather than blindly facilitating cryptocurrency activity and possibly helping criminals. Under the law, blockchain forensics is necessary in order to have a proper anti-money laundering (AML) policy, and to be able to report suspicious activity to the government.