The Nasdaq Stock Exchange has published its Global Financial Crime Report, focusing on financial crime data from the past year. Surprisingly, Bitcoin and other cryptocurrencies were not mentioned in the report, leading some to infer that cash (fiat currency) remains a preferred tool for facilitating criminal activities. According to Nasdaq, financial crime continues to be a significant issue, estimating that around $3.1 trillion in illicit funds will flow through the global financial system by 2023. These funds are associated with various criminal activities, including drug trafficking ($782.9 billion), human trafficking ($346.7 billion), terrorism financing ($11.5 billion), and fraud scams and bank fraud schemes ($485.6 billion).
Nasdaq Chairman and CEO Adena Friedman emphasized that financial institutions have been actively addressing financial crime for decades. Friedman acknowledged that while financial institutions are working to prevent fraud, the issue cannot be resolved by any single company, industry, technology, or government alone. Friedman stressed the importance of collective responsibility to be part of the solution, stating that multilateral cooperation is crucial. Tether CEO Paolo Ardoino echoed this sentiment, emphasizing the alarming nature of the trillion-dollar financial crime problem. He called for collaborative efforts and emphasized Tether's commitment to working with law enforcement to combat criminal activities in the crypto space.
Ardoino mentioned Tether's ongoing collaboration with law enforcement agencies worldwide to freeze addresses and wallets involved in criminal activities. He urged traditional financial institutions to take similar actions. Notably, stablecoins, such as Tether's USDT, were highlighted in a recent report by blockchain analysis firm Chainalysis as the "cryptocurrency of choice" for criminals in 2022 and 2023. The report revealed that illegal trading volume involving stablecoins surpassed that of Bitcoin, Ethereum, and other altcoins. Gabor Gurbacs, Director of Digital Asset Strategy at investment firm VanEck, pointed out the absence of mentions of Bitcoin, cryptocurrencies, or stablecoins in the Nasdaq report. Gurbacs emphasized the role of banks and institutions as primary conduits for criminal activities.
