XRP is used by some individuals to carry out their criminal activities. However, it still does not meet the degree to which bitcoin is used for crimes. This is according to a report publicized by Elliptic, a Blockchain forensics firm.
XRP is the coin of the cryptocurrency and digital payment network for monetary transactions Ripple. The startup also owns an approximate amount of 60% of the XRP supply. It also retails the tokens to fund procedures and has been pitching bank softwares that use XRP for the past years.
According to Elliptic’s report last Wednesday, some multiple Ponzi schemes and darknet activities use $400 million worth of XRP to carry out their illicit activities. While the said amount seems to be so large, it only represents 0.2% of XRP transactions
On the contrary, a total of $829 million of bitcoin have been used in the dark web, according to the analytics purveyor. The amount represents a total of 0.5% of bitcoin transactions, a little larger than that of XRP’s.
According to the co-founder and chief scientist of Elliptic Tom Robinson, notwithstanding the amount, this rate just demonstrates that there is a criminal activity going on using the coin. Consequently, businesses that handle such transactions need to inspect it as there is a possibility that they are being used to launder those proceeds.
On the other hand, a spokesperson from Ripple noted that XRP is open source and suburbanized just like any other kind of crypto-assets. He added that XRP transactions supported by Ripple are secured and went through regulated institutions.
Concerns of this kind are especially critical for the target market of XRP and regulated financial institutions.
Elliptic and other Blockchain forensic firms discussed the involvement of crypto-assets on crimes like drugs, child sexual abuse material, weapons, and ransomware-as-a-service (RaaS)— a cyber threat in the form of paid malware.
Subsequently, Elliptic reported that they had detected numerous sites that accept XRP and other crypto-assets in purchasing things like stolen credit card numbers on the dark web.
On the other hand, XRP’s case deals with much of the transactions related to swindles, and Ponzi schemes said, Robinson.
Ripple began providing an inexpensive and efficient cryptocurrency channel to connect parallel banks to provide an almost instant cross-border payment.
With regards to this, Robinson mentioned that the same could be regarded for XRP in the situation of having its reputation questioned by Elliptic. He also stressed that highlighting XRP-related illicit activities would rather improve the virtual currency’s credibility.