Elliptic, an on-chain data analytical firm has recently revealed some details in regards to sanctioned entities that would shock US administration. Elliptic has revealed that surprisingly, many jurisdictions and actors sanctioned by the United States administration are resorting to cryptocurrencies.

These entities have found cryptocurrencies as the best source to circumvent the sanctions and restrictions imposed by the US authorities. With the help of cryptocurrencies, they have been able to carry out their illegal activities.

This is not something that has started happening recently, it is something that has been going on since early 2020.

Elliptic has revealed that the jurisdictions and actors are managing to do it through several mediums available through the cryptocurrency industry. They are able to do it through the decentralized finance (DeFi) platforms or decentralized exchanges (DEXes). They are also using privacy wallets, coinswap services, and privacy coins to carry out their illicit transactions.

The reason why they are using it is simple, which is the term decentralized, where one does not have to provide any personal identification information. Therefore, the actors that have been sanctioned, are able to perform illicit transactions without any restrictions or blockades.

Although some part of the cryptocurrency industry is centralized, majority of it is decentralized. Therefore, the majority of the cryptocurrency industry does not adhere to the KYC policies and requirements.

The KYC policy requires the investors and traders to reveal their identities and this way, the regulators keep a check on any entities involved in illicit activities.

Another way for the US sanctioned entities to carry out their plans is through cryptocurrency mining activities. Through this mechanism, they are also able to generate funds and use them to carry out illicit transactions.

The analytical firm has also revealed some very alarming figures about the amount of money the people in the “Specially Designated Nationals List (SDN list)”, are able to channel through crypto-sources.

According to the report, the crypto-wallets of such persons have shown that more than $175 million worth of ETH and BTC has been received by them. This means that such personalities are able to perform their illicit activities even when they have sanctions imposed on them.

This gives the United States administration another reason to dislike the existence of cryptocurrencies. It is because of the cryptocurrencies such personalities are able to get away with performing illicit transactions.

With the help of cryptocurrencies, such entities are able to find an alternative to traditional banking and financing systems.

If this continues happening, then the US administration has to come up with far more sophisticated and well-thought policies to outperform the usage of cryptocurrencies. Over time, the cryptocurrency industry has grown enormously, and now, there is no point in trying to make it all go back to zero.

Instead, the US government has to come up with a better solution to address this problem at the earliest.

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