Blockchain analytics firm Elliptic finds over $400M worth of XRP tied to illegal activities

Quick Take

  • Blockchain analytics firm Elliptic can now track XRP transactions
  • It found over $400 million worth of XRP transactions related to suspicious activities
  • Instead of being used on dark web, a significant portion of these XRP that tied to illegal acitivites are used in Ponzi schemes or scams
advertisement

There are over $400 million worth of illicit activities conducted via XRP, and a large portion of these activities are scams and Ponzi schemes, Elliptic, a blockchain analytics startup, found in its research. 

The UK-based startup announced on Wednesday that it can now track the transactions of XRP, marking the 12th digital assets the firm supports. According to Elliptic co-founder Tom Robinson, the firm is the first to have transaction monitoring capacity for XRP and it has already identified several hundred XRP accounts related to illegal activities.

Per Elliptic’s research, the XRP volume involved in illicit activities is only 0.2% of the token’s total transaction volume. However, unlike bitcoin, whose illegal activities are usually dark market related, a notable proportion of XRP-related illegal activities is scams and Ponzi schemes, according to Robinson. Robinson said this difference is likely due to XRP’s popularity among retail users.

“I suspect there are a lot of retail holders of XRP, which may be an attractive target for scammers,” Robinson told The Block. 

Due to the unique structure of XRP blockchain’s, when compared to that of Bitcoin's and Ethereum's blockchains, it took Elliptic a long time to deploy the monitoring solution, according to Robinson. However, there is much customer demand for XRP and the token’s high exchange trading volumes made it an “obvious” choice for Elliptic to support, said Robinson. 

“When we decided to add another asset, that is primarily due to client demand which itself is driven by the market cap of the currency and also its exchange volume. So XRP was an obvious one that we just add.” 

The firm’s XRP monitoring solution is currently still in beta testing, with official support rolling out in the first week of December. Elliptic recently raised a $23 million Series B led by Japan’s SBI Holdings to expand into the Asia market, where XRP is popular. Meanwhile, rival Chainalysis is also looking to add support for XRP soon, aiming to cover a total of 48 tokens by the end of the year. 

"We have to balance going deeper on the assets we already support or adding further assets to our platform," said Robinson. "We don't want to just add a thousand assets to our platform because that would be very little value to our customers."


© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Related Reading

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

Why BTG Pactual is launching a crypto platform

Brazil-based BTG Pactual, Latin America’s biggest investment bank, is launching its own crypto asset platform that will initially support bitcoin and ether trading. The platform will be called Mynt and allow customers to purchase bitcoin and ether, BTG Pactual’s Head of Digital Assets André Portilho tells The Block. Eventually, the platform will support other digital […]
Read Full Story
Sep 24, 2021, 9:17PM UTC

TRON USDC now available

Delivering on a vision for an interoperable global standard for dollar digital currency, Circle and TRON have partnered to make USD Coin (USDC) available on the TRON blockchain, which has grown to more than 56 million accounts and nearly 2.5 billion transactions since its founding just four years ago. TRON is home to a broad ecosystem for digital assets in Asia and around the world, and the TRON community can now benefit from easy access to the world's fastest-growing, regulated dollar digital currency. 
Read Full Story
Sponsored Post
More