A blockchain analytics firm used by law enforcement and the like announced they are now able to analyze the XRP network.
They found $400 million XRP is used for illicit activity, representing only 0.2% of total XRP transactions.
“We began researching XRP more than a year ago and have already identified several hundred XRP accounts linked to illicit activity ranging from thefts to scams and the sale of stolen credit cards,” said Dr. Tom Robinson, Chief Scientist and Co-founder of Elliptic, before further adding:
“As criminal use of crypto-assets such as XRP evolves, we are committed to shining a light on this illicit activity, giving financial institutions the confidence they need to engage with the crypto ecosystem.
XRP is gaining increasing traction in the APAC region among financial institutions and banks. With cryptocurrency regulatory frameworks advancing quickly, our AML solutions will help accelerate adoption in this region and globally.”
The vast majority of the XRP network is clearly being used for legitimate reasons. Perhaps somewhat surprisingly the same applies to bitcoin too, with some 98% of bitcoin transactions being legitimate value exchange.
In a collaboration with MIT and IBM, Elliptic revealed in August just 2% of bitcoin transactions were marked as potentially illicit.
A likewise figure has not been provided for eth, which they also analyze, or litecoin and tether.
Those are the only networks for which they currently provide services, with it interesting to see whether one day they’ll announce likewise figures for monero or zcash.
The technology of the latter, zero knowledge proofs, is being incorporated into ethereum to some extent, but the public blockchain itself can be pretty private for small amounts of say $1 million or less if it’s used with care.