NFT money laundering is on the rise

A report by blockchain data platform Chainalysis on Wednesday found that while only a small fraction of activity in the NFT market can currently be attributed to money laundering, their share is growing. The report states that “While it is difficult to quantify money laundering in the physical art market, thanks to the inherent transparency of blockchain, we can make more reliable estimates of money laundering based on NFT transactions. According to the report, by Cryptocurrency sent by illicit addresses to the NFT market jumped sharply in Q3 2021, topping $1 million, and grew further in Q4 to nearly $1.4 million. “In both quarters, the vast majority of Such activity all comes from scam-related addresses that send funds to the NFT marketplace for purchases. “NFTs offer the potential for abuse. It is important for our industry to consider how this new asset class can change how we connect blockchain to the real world,” the report said.