Elliptic: ‘$400 million worth of XRP is used illegally’

A blockchain analytics firm used by law enforcement agencies claims $400 million worth of XRP is used for illegal activity.

Elliptic, which specialises in crypto-asset risk management, analysed the XRP network and found a total of 0.2% of XRP transactions are illicit in nature.

XRP is the third-largest cryptocurrency by market value after Bitcoin and Ethereum, and is an increasingly popular asset in Asia.

Dr Tom Robinson, chief scientist and co-founder of Elliptic, said: “We began researching XRP more than a year ago and have already identified several hundred XRP accounts linked to illicit activity ranging from thefts to scams and the sale of stolen credit cards.

“As criminal use of crypto-assets such as XRP evolves, we are committed to shining a light on this illicit activity, giving financial institutions the confidence they need to engage with the crypto ecosystem.”

He added: “XRP is gaining increasing traction in the APAC region among financial institutions and banks. With cryptocurrency regulatory frameworks advancing quickly, our AML solutions will help accelerate adoption in this region and globally.”

Elliptic analysts can also dive into how XRP is being used by illicit actors.

This involves ongoing dark web research, identification of money laundering patterns, and the collection of high-quality data linking XRP accounts to known entities.

This week, Danish computing legend Bjarne Stroustrup, who invented the C++ language 34 years ago, lamented the fact his creation is used by crypto crooks.

“I’m very happy and proud of some of the things C++ is being used for and there are some other things I wish people wouldn’t do.

“Bitcoin mining is my favourite example – it uses as much energy as Switzerland and mostly serves criminals.”