The latest investigation reveals the use of as many as $400 million worth of XRP in illegal activities, and the counter effect may squash Ripple Foundation’s efforts to build the brand name through partnerships.
Elliptic, a blockchain-based company that specializes in risk management for the cryptoassets, has recently discovered $400 Million in illegal XRP transactions, thereby, making it about 0.2 percent of the total transaction of the network.
Elliptic is now monitoring XRP, adding it to the list of cryptoassets that the firm monitors. Hence, 0.2 percent of all the XRP transactions, which is $400 Million linked to criminals and criminal activities.
XRP in illegal activities
The funds were linked to criminal activities such as thefts, credit card scams, and other illegal activities. Elliptic is positive that the data collected would be utilized by the financial institutions for efficient monitoring of the transactions on the Ripple network. It is the first-ever comprehensive screening conducted for XRP to detect illegal activities.
As cross-border payments are the specialty of XRP, these recent findings will prove to be prescient. Lately, Ripple has been gaining a grip on the Asia Pacific region amongst banks and financial institutions; these latest discoveries of Elliptic would prove instrumental in further legalities and transparency.
The report might seem damning; however, the fact that $400 million being linked to the criminal activities represents a small portion of XRP transactions.
Elliptic is planning to launch a complete platform for XRP transactions’ monitoring by employing data linking and the money laundering patterns at the start of December. Despite having found a fraction of XRP in illegal activities, XRP is currently ranked as the third-largest in the crypto industry and trading hands at $0.249.
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