UK Crime Agency Warns of 'Innovative Use' of Crypto by Launderers

The National Economic Crime Centre (NECC) in the UK has warned of the 'innovative use' of cryptocurrency by launderers, who are using crypto products to move illicit value at scale. According to the NECC's annual report, criminals are combining traditional and novel methods to evade detection and launder money across borders.

The agency says that many organized crime groups no longer launder their own proceeds, but instead outsource it to dedicated networks for a fee. This has led to the proliferation of laundering networks, which are using crypto assets as a means to move illicit value.

The NECC has identified 20,000 approval-phishing victims and frozen $12 million in March through Operation Atlantic, a joint effort with the U.S. Secret Service, Coinbase, Binance, Kraken, and Tether. The agency is expanding its approach to other high-harm money laundering networks that pose the greatest illicit finance risk to the UK.