In the year $3.1T in illicit funds flowed into global financial system by 2023 – Nasdaq

The stock exchange company Nasdaq released the “Global Financial Crime Report” last year, showing information related to financial crime. Bitcoin (BTC) and crypto are not mentioned, which reinforces the belief for many that fiat currency is king in facilitating crime.

The report notes that financial crime remains a “multi-trillion dollar problem”. Nasdaq in 2010 By 2023, it estimates that nearly $3.1 trillion in illicit funds will have flowed through the global financial system. Through money laundering, the funds fuel crimes such as human and drug trafficking and terrorist financing.

Of the trillion dollars in illegal money, Nasdaq said $782.9 billion was involved in drug trafficking and $346.7 billion was related to human trafficking. In addition, the report highlighted that around $11.5 billion was used for terrorist financing. Apart from these, by 2023, $485.6 billion was lost to fraud and bank fraud.

In the report, Nasdaq Chairman and CEO Adena Friedman said financial institutions “have been at the forefront of this issue for decades.” The CEO stated that the institutions will continue to strengthen their fight against fraud. Friedman said financial institutions are responding to the pressure to prevent fraud, but they cannot do it alone. Friedman explained:

“Ultimately, we know that no one company, industry, technology or government can solve the complex problem of financial crime alone. We all have a responsibility – to ourselves and to the world – to be part of the solution.

In a statement to Cointelegraph, Tether CEO Paolo Arduino described the issue of multi-trillion dollar financial crime as incredibly serious. The executive stated that no single company can solve the issue and said, “Only through multilateral cooperation will we be able to stop these illegal activities.”

According to Arduino, Tether is working with law enforcement agencies around the world to identify addresses and wallets associated with criminal activities, and calls on previous institutions to do the same.

“Tether is committed to continuing our collaborative approach with law enforcement to stop destructive financial crimes, and in this Nasdaq report we echo our call for legacy financial institutions to do their part to do what Tether is doing,” Arduino wrote.

Related: Crypto hack losses down 51% by 2023: Report

January 18, a report published by the blockchain analytics firm Chainalysis highlighted that in the crypto space, stablecoins have been the “cryptocurrency of choice” among criminals in 2022 and 2023. Stablecoins illegal transaction volume exceeds Bitcoin, Ether (ETH). ) and other altcoins.

Meanwhile, Gabor Gurbacs, director of digital assets strategy at the investment company VanEck, highlighted in a post on X (formerly Twitter), BTC, crypto or stablecoins were not mentioned in the Nasdaq report. The executive refers to banks and institutions that are the “main conduit” for criminal activities.

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