Blockchain analytics firm Elliptic warned criminals are increasingly targeting nonfungible tokens (NFTs), reporting the scamming of over $100 million worth of such blockchain-based assets during the past year.
Since 2017, more than $8 million in proceeds from illicit activities has been laundered via platforms enabling NFT creation, purchase, and sales.
Another $328 million originated from obfuscation services, including mixers that allow users to exchange cryptocurrencies relatively anonymously.
Elliptic disclosed that the Tornado Cash mixer platform originated about $137 million of cryptocurrencies processed by NFT marketplaces, and was "the laundering tool of choice" for 52% of NFT scam proceeds.
The report also said NFT-using platforms are under threat from sanctioned entities and state-sponsored groups, and recommended proactive risk management to fight off malefactors and screening for such entities.
From The Wall Street Journal
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