Every day, many millions of dollars worth of crypto is tainted, primarily by governments flagging it for coming from or passing through a wallet identified as being involved with criminality (scams, theft, drugs, tax evasion, etc). If this crypto is sent to a regulated exchange, they will generally freeze and eventually seize it.
Down the line, this crypto is either returned to the victim, or siezed and auctioned by the relevant government. In both cases, the crypto is then un-tainted, and "clean" again. The laundry cycle is complete.
Does anyone know if there's some sort of federated chain analysis out there that shows how much of each is happening by day? Id imagine the pool of tainted crypto is growing as a percentage of the total, but curious how fast, and by what coins.
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