"Dirty" cryptocurrencies are assets stolen from crypto exchanges or used in illegal activities. During criminal investigations, such assets are tracked and marked, which allows their movement and the addresses to which they are sent to be seen later.
The amount of “dirty” cryptocurrency is growing, and any recipient can receive marked assets to their wallet without checking the funds for cleanliness. Large services are already blocking such wallets almost everywhere, and proving to them that the user is not involved in crimes is not so easy. Do not be surprised by the blocking: The term “dirty” cryptocurrency refers to assets that are associated with various types of illegal activity, including theft, scam, money laundering, terrorist financing, drug trafficking and fraud. There is no single standard for assessing the “corruption” of cryptocurrencies, except in cases where the address is directly associated with criminal activity. However, some jurisdictions have recommendations and instructions for marking cryptocurrency transactions.
Various "dirt": There is not much frankly "dirty" cryptocurrency, that in the total volume its quantity does not increase, because the volume of the cryptocurrency itself grows - new USDT tokens are issued, BTC is mined. But in absolute values the quantity of "dirt" is growing, because new crimes are committed.
Chance of getting "dirty" money: Large centralized exchanges (CEX) are the most law-abiding market participants, since they comply with the requirements and recommendations of the international organization FATE. According to him, such crypto exchanges use special analytical systems to check the purity of the cryptocurrency "at the entrance" and, accordingly, it is unlikely to get "dirty" cryptocurrency on them. The risk with CEX can only be if the crypto exchange itself has fallen under sanctions and all funds associated with it are marked as sanctioned. Centralized crypto exchanges block accounts if there is a suspicion of a connection with "dirty" cryptocurrency, because otherwise they will have problems with regulators. Decentralized services (DEX) may not have licenses to operate in the country where they operate, such services can earn money while being in the "gray zone" and not comply with AML requirements, they can with a high degree of probability send you "dirty" cryptocurrency.
P.S: if this article was useful, share it with a friend and subscribe to us 🙏
