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A very high amounts of NFTs wash sell traders: Chainalysis

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A very high amounts of NFTs wash sell traders: Chainalysis 7

Blockchain analytic firm’s report noted that the majority of the NFTs trades accompanied with the illegal funds transactions to wash the money. 

The whole crypto industry witnessed how the NFTs concept introduced a new change in the trend of this crypto space but if we will look at the origin of the NFTs then we will find that NFTs were introduced with the concept of no loss for the NFTs traders. But here data records are showing something different picture.

According to the report of Chainalysis, blockchain analytic platform, in 2021 NFTs grabbed a tremendous level of growth with a total of $44.2 billion worth of crypto assets sent to the Ethereum network, while the same number was $106 million in 2020. 

The report also noted that such an increase in the influx of money in NFTs marketplace accompanied by the involvement of bad actors also, who misused the crypto NFTs illegally in money laundering or terrorist funding. 

Recently OpenSea, an NFTs trading platform, claimed that the free NFTs minting tool of the platform was misused more than 80% times, in either plagiarized, fake, or spam. 

Chainalysis report found that NFTs trading is going to be the biggest loophole to invite the bad actors to facilitate illegal transactions. 

Wash sells NFTs trading 

Wash Sell trading is a situation of a trade in which buyer and seller is the same person. That means the same person will sell his own NFTs to himself to get white funds. Alternatively, we can say bad actors are using NFTs platform as a crypto mixer. 

Chainalysis is currently working on a tool to detect such bad actors of the crypto industry, which are using Wash sell method to keep himself out of the illegal funds to get white funds. 

Recently US treasury also noted that people bad actors are taking advantage of NFTs collectibles to facilitate illegal Transactions e.g money laundering and terrorist funding.

Read also: Solana’s proof-of-history is more riskier than 51% attack on Proof-of-work?

A very high amounts of NFTs wash sell traders: Chainalysis

 

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