Countries that target US government penalties have advanced in prohibited crypto activity, receiving nearly $ 16 billion in digital assets last year – about 39% of prohibited token transactions – According to a report from the chainalysis released Wednesday.
2024 is a year in which those countries——that Iran-ruling individuals in the activity associated with penalties, mentioned the report from the crypto-analytics company.
“While restrictions on the west, the country’s penalties return to cryptocurrencies and alternative financial systems to maintain trade and access to capital,” according to the report, citing Russian and Iran’s financial transactions. to trade partners like China and India, using payment mechanisms that do not rely on US dollar.
“While the use of cryptocurrency in punishments may be related to the forbidden financial control of the state , “said the report.
The US Foreign Assets control office, or OFAC, is the government arm that sets the penalties, and last year it released 13 with crypto addresses. That was from last year, but still high. Now that President Donald Trump took the Executive Branch and Installed Scott Bescent Above Treasury, the ad-Crypto administration may take a different approach to digital assets.
Crypto-mixing platform Tornado Cash has become famous US authorities target In 2023, but popular services still cope with hundreds of millions of dollars in crypto transactions a month in 2024, the report said, even though it did not return to its pre-sanction level.
Such services are criticized for their use of launching stolen funds or to avoid penalties, and they are difficult to shutter because they operate through smart contracts with a decentralized blockchain. Users who are driving stolen funds have an increase in the use of Tornado Cash in 2024, which costs more than 24% of its total flow, according to the chainalysis.
Tornado Cash has come to represent legal fighting in the US government industry with anonymous user and if developers should be responsible for their creation, and a court of US federal appeal court The original penalties declined in November.
Chainalysis focused close attention to Iran in the latest report.
“The Iranian government maintains extensive control over the country’s financial system, including cryptocurrency infrastructure,” the document said. “For many Iranians, cryptocurrency represents an alternative financial system, and increasing the use of Iranian crypto exchanges suggests that more individuals and institutions use crypto to protect wealth and prevent the financial restrictions. “
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