In its report, shared with Cryptonews, Global Ledger traced thousands of wallet transactions from darknet addresses into regulated crypto venues. It stated that DNMs rely on crypto as a primary method of payment. Combined, the marketplaces moved nearly $2 billion worth of Bitcoin during the first nine months of this year. Kraken facilitated the largest volume of illicit transfers, totaling $1.3 billion, followed by BlackSprut at $344 million.Omg!Omg! was the third highest with $123.4 million in volume. Tran ...

Core Insights - Roman Storm, co-founder of Tornado Cash, was convicted for operating an unlicensed money-transmitting business, marking a significant moment in the fight against crypto money laundering [1] - Regulators have historically viewed mixers like Tornado Cash as major money laundering threats, but data suggests that centralized exchanges are the primary facilitators of crypto money laundering [2][3] Centralized Exchanges as Laundering Hubs - Centralized exchanges are identified as the main platforms for laundering illicit crypto funds, with a 2025 Chainalysis report indicating that most illicit funds were routed through these exchanges in 2024 [5] - Criminals prefer centralized exchanges due to their liquidity, speed, and global reach, which allow for the conversion of dirty crypto into cash [6] - Compliance programs at centralized exchanges are often under-resourced and poorly enforced, leading to illicit transactions being overlooked [6] Enforcement and Compliance Issues - High-profile cases, such as the U.S. Justice Department's settlement with Binance, have highlighted systemic issues within centralized exchanges, including their involvement in transactions related to ransomware and darknet markets [7] - Binance has increased its compliance spending to $213 million in 2023 following these revelations [7] - BitMEX faced a $100 million fine for violations of the Bank Secrecy Act, with its founders later receiving pardons [7]