Bitrace’s recent analysis of Tron addresses involved in Over-the-Counter (OTC) businesses reveals concerning findings. In the past two years, these addresses have received over 3.439 billion USDT, categorized as ‘at risk,’ excluding addresses connected to centralized platforms and money laundering institutions. In total, a staggering 34.39 billion USDT has flowed into these OTC addresses over the past 24 months.
More than half of these funds are medium to high-risk, with 14.7% tied to online gambling, 20.1% to gray and black market products, and 19.4% linked to money laundering. Accumulating USDT from these addresses can increase wallet contamination and attract scrutiny from law enforcement agencies.
The cryptocurrency industry’s embrace of anonymity introduces higher risks. OTC markets with greater anonymity tend to attract more risky funds. Bitrace highlights a case where cryptocurrencies were used for online gambling, leading to money laundering allegations. They also mention an OTC address actively involved in such activities.
Ongoing challenges in the cryptocurrency world, like the “JPEX thunderstorm incident,” illustrate the risks involved. Bitrace’s audit results revealed high-risk funds in JPEX’s hot wallet addresses, potentially leading to anti-money laundering investigations for acceptance companies.
Bitrace advises cryptocurrency investors to choose compliant and licensed platforms for OTC transactions to avoid risks. Ignoring these risks could have serious consequences for investors and the broader cryptocurrency ecosystem.
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