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$400M Worth of XRP Tied to Illegal Transactions According to Research
November 20  |  2 min read

Research Shows $400M Worth of XRP Tied to Illegal Transactions

The COIN360 Editorial Team

Research done by blockchain analysis provider Elliptic showed that around $400M worth of XRP is tied to illegal transactions.

Today, Elliptic, provider of risk management systems for cryptocurrencies, released findings that linked $400M of Ripple’s currency XRP to illegal transactions, primarily scams like Ponzi schemes, and theft.

According to Tom Robinson, chief scientist and co-founder of Elliptic, the type of illegal transactions associated with XRP come from the token’s popularity among retail users, “which may be an attractive target for scammers.”

Robinson stated that the findings appeared after a team at the London-based firm began scouting the dark web for any use of XRP, as they do for any use of cryptocurrency. Elliptic shared the findings alongside the announcement of the launch of the firm’s XRP transaction monitoring system, allegedly the world’s first XRP monitoring system, currently in its beta testing phase and scheduled to come out at the beginning of December.

Within the illegal transactions related to the use of XRP, the firm also found the sale of credit card details, although on a smaller scale than scams and theft. According to Elliptic’s research, illegal transactions make up for 0.2% of all XRP transactions, while 0.5% of all BTC transactions are linked to dark web activity. According to Robinson, “XRP is being touted for use as a tool for financial institutions,” and the use of BTC is more preferred by criminals because of its liquidity.

Additionally, Ripple and its CEO Brad Garlinghouse have been under fire lately for a lawsuit filed by the U.S. Securities and Exchange Commission for the alleged selling of unregistered securities. Ripple has since denied the allegations, however, it hasn’t succeeded as the agency continues to pursue legal actions.