According to the UK Financial Intelligence Unit (UKFIU), in suspicious activity reported by cryptocurrency exchanges, reports relating to fraud accounted for just over 50% of their Suspicious Activity Reports (SARs).
Approximately one quarter of these related to investment fraud, where the victim had been scammed into setting up a cryptocurrency wallet, with the promise of significant returns on their investment. In many cases the wallet is then controlled by unknown actors, and the funds withdrawn without the victim’s consent.
The other main suspicious activity reported in cryptocurrency exchanges’ SARs was the direct or indirect transfer of cryptocurrency to or from addresses associated with darknet market places.
The UKFIU has also reported that engagement with stakeholders and the use of more suitable keywords has resulted in a steady increase of cryptocurrency SARs identified for review.
Cryptocurrency SARS
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