Darknet Markets Shift Back to Bitcoin After Monero Delisting from Binance
Darknet markets are shifting back to bitcoin as their main cryptocurrency due to liquidity and accessibility issues with privacy coins like monero. Eric Jardine from Chainalysis noted a significant increase in bitcoin inflows after major exchanges delisted XMR.
Key points include:
- Western darknet markets previously favored XMR but are now returning to bitcoin.
- OKX removed XMR, dash, and ZCash at the end of 2023; Binance announced plans to delist XMR in February 2024.
- Monero transactions have halved compared to last year, according to on-chain data.
- Illicit transactions account for around 0.14% of all crypto activity, roughly $50 billion, with a rise in stablecoins used for illicit payments.
- The Tron-led T3 Financial Crime Unit has frozen over $100 million linked to illicit activities.
- Law enforcement focuses on darknet markets involved in fentanyl trade due to its priority status in combating drug trafficking.
- The recent bust of the Nemesis market was partly due to its involvement in the fentanyl trade, resulting in sanctions on associated crypto wallets.