Possible rewritten article:
Cryptocurrency hacks have been on the rise in recent years, but there are signs that criminals are finding it increasingly difficult to cash out their loot. According to TRM Labs, a blockchain intelligence firm, this might be due to a combination of tighter regulations and the blacklisting of popular money laundering tools.
One reason for the increased difficulty in laundering stolen coins is the ramping up of Know Your Customer (KYC) and Anti-Money Laundering (AML) policies by crypto exchanges. These policies require users to provide more detailed information about their identity and the source of their funds, making it harder for criminals to trade in stolen coins without being caught.
Another factor is the blacklisting of Tornado Cash, a popular mixing protocol for the Ethereum blockchain that allowed users to anonymously mix their coins with others to obfuscate their origin. Tornado Cash was sanctioned by the US Treasury in August 2022, which automatically blacklisted all Tornado-related funds on regulated exchanges. This move has made it much harder for criminals to cash out through these exchanges without raising red flags.
TRM Labs suggests that these regulatory efforts may be having a real impact on the ability of hackers to profit from their crimes. “As a result, we may see criminals start to move towards other forms of monetizing their stolen cryptocurrencies,” the firm said in a recent report.
While it is too soon to tell whether this trend will continue, it is clear that regulators are taking a more proactive stance on crypto crime. From the recent OCC guidelines on stablecoins to the G7’s call for stronger cryptocurrency regulations, governments and regulators are paying close attention to the risks and opportunities of this emerging technology.