I read the NFT and Financial crime report by ELLIPTIC for the period July 2021 to July 2022 so you don’t have to.

Here are the key takeaways 👇

A short thread 🧵

1/6 🧵 Eth inflow into the market

The inflow of Eth into NFT marketplaces was in the $bn’s since Q3 2021 to Q2 2022.

This was in correlation with the height of the bull run and a drastic increase from the previous months.

Here is a breakdown 👇

2/6 🧵 Key NFT scam stats part 1

🔹During July 2021 to July 2022 NFT scam theft value peaked in May 2022 at $23.9m for the month.

🔹July 2022 saw 4600 NFTS stolen – record number for a month

🔹Most valuable NFT stolen was CryptoPunk #4324 in Nov 2021 worth $490k

👇

3/6 🧵 Key NFT scam stats part 3

A total value of $69.5m lost in NFTs between July 2021 to July 2022

Here is a breakdown on the losses based on scam type👇

4/6 🧵 Laundering of Proceeds of stolen NFTs

🔹Out of $67.1m in Eth from 323 scammer wallets 52% or $35.2m was laundered through Tornado Cash

🔹$15.1m was laundered through crypto exchanges or NFT marketplaces

Here is a breakdown of how the funds were laundered in detail👇

5/6 🧵 Rug Pulls

While most rug pulls make only thousands, there were some sizable rug pulls in the millions during this period.

Here is a non-exhaustive list of some of the biggest rug pulls in terms of volume👇

6/6 🧵 Rug Pull Laundering Sample

Rug pulls have demonstrated the use of different laundering methods however CEX's are the favourite method for rug pull laundering.

Here is a breakdown of six rug pull scammer addresses traced on Eth 👇

If anyone wants to see the full detailed report you can download it from the bottom of my article on TheOpenChain website here:

www.theopenchain.com/post/nfts-and-financial-crime-report-by-elliptic

If you enjoyed the short summary, please engage and like the tweets.

Thank you for reading 💙